President Trump is traveling to the Mack Trucks plant in Macungie, Pennsylvania today to tout American manufacturing — even as his own trade war, war in Iran, and war on health care are driving up the cost of everything truckers need to stay on the road. From the diesel in their tanks to the trucks they finance to the health insurance covering their families, Trump’s policies are squeezing independent truckers and small fleet owners from every direction, in a state with more on the line than most: Pennsylvania ranks 4th in the nation in professional truck drivers.
BY THE NUMBERS
- Diesel prices are up 37% year-over-year — averaging $5.04 a gallon as of June 21, up from $3.67 a year ago — driven by oil supply disruption from Trump’s war in Iran.
- Tariffs on imported trucks and parts could add up to $35,000 to the price of a new heavy-duty truck, pushing the total cost of a new Class 8 truck to roughly $238,000 Nearly 50% of Class 8 trucks sold in the U.S. are imported from Mexico, and 43% of all truck parts come from foreign suppliers, all now subject to tariffs truckers can’t avoid.
- Truck transportation employment dropped in May and has fallen to 1,424,800 jobs nationwide as of, down roughly 163,000 jobs from its January 2023 peak of 1,587,800
- Independent owner-operators — who make up roughly 11% of all truck drivers — are self-employed small business owners with no employer health plan, leaving most to buy coverage on the ACA Marketplace, where premiums have spiked 114% on average since Trump and Republicans let enhanced premium tax credits expire (KFF).
TRUMP’S WAR IN IRAN IS BURNING THROUGH TRUCKER’S MARGINS
Diesel Prices Are Up 37% Year-Over-Year, and Independent Truckers Are Paying the Price at Every Fill-Up. Small fleet owners and independent owner-operators are hit hardest by high fuel costs, since most are still financing their trucks and have no fuel surcharge to fall back on like larger carriers do. The national average diesel price sits at $5.04 a gallon as of June 21 — up from $3.67 a year ago, a 37% increase driven largely by oil supply disruption from Trump’s war in Iran. Truckers paid by the mile, not the hour, have watched fuel costs eat directly into the thin per-mile margins that should be their profit.
Trucking Jobs Remain Down Sharply From The January 2023 Peak. Truck transportation employment fell to 1,424,800 jobs in May, down roughly 163,000 jobs from its January 2023 peak of 1,587,800. Independent economists note the official count doesn’t even capture the additional toll on self-employed owner-operators, who have been squeezed out by years of low freight rates and, more recently, spiking diesel prices.
TRUMP’S TARIFFS ARE MAKING IT EVEN MORE EXPENSIVE TO OWN AND MAINTAIN A TRUCK
Tariffs Could Add Up to $35,000 to the Price of a New Truck. A 25% Section 232 tariff on imported heavy-duty trucks and parts, in effect since November 1, has truckers and fleet owners bracing for sticker shock. The American Trucking Associations estimates the tariff could push the total cost of a new Class 8 truck to roughly $238,000, up from an average of $170,000. Nearly half of Class 8 trucks sold in the U.S. are imported from Mexico, and 43% of truck parts come from foreign suppliers, meaning almost no trucker is insulated from the cost increase.
Tariffs on Imported Parts Are Especially Disruptive Because Domestic Supply Can’t Keep Up. Industry analysts have warned that tariffs on imported parts hit hardest because the U.S. lacks sufficient domestic supply of key components like transmissions, axles, and cooling modules. For Pennsylvania, where trucking is a major employer and economic driver, rising equipment costs make it harder for the state’s small carriers to keep trucks on the road.
THE REPUBLICAN WAR ON HEALTH IS HITTING INDEPENDENT TRUCKERS HARD
Truck Owner-Operators Are Self-Employed Small Business Owners, and They’re On Their Own for Health Insurance. Independent owner-operators — who account for roughly 11% of all truck drivers nationwide — run their own businesses with no employer plan, leaving the ACA Marketplace as the most common path to coverage. Self-employed workers are three times more likely to rely on ACA coverage than the overall population, and independent truckers are no exception, given irregular income and the lack of any group plan to fall back on.
Trump and Republicans Ripped Away ACA Tax Credits, Spiking Premiums for Truckers Who Buy Their Own Coverage. After Trump and Republicans let enhanced premium tax credits expire last year, premium payments for Marketplace coverage increased by 114% on average. Thirty-eight percent of working-age ACA enrollees losing premium tax credit eligibility are self-employed — a group that includes independent truckers with no other path to coverage. For an owner-operator already absorbing higher diesel and equipment costs, a sudden jump in health insurance premiums can mean choosing between coverage and staying on the road.
Medicaid Cuts Threaten Coverage for Lower-Income Truckers, Too. Last year, Trump and Republicans slashed $1 trillion from Medicaid, and roughly 2.5 million Americans who relied on the program have already lost coverage. Twenty percent of self-employed workers and their families rely on Medicaid for coverage — leaving some independent truckers in lower-income brackets exposed to losing care altogether.
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