🎣 Big Rigs, Bigger Bills

Happy Monday. A 25% truck tariff hits Nov. 1. Parts, prices, and patience are about to get tested. We break down who pays and who profits in today's feature.

Plus:

English-Only Bill Gains Traction
FMCSA’s $75K Crackdown
Mexico’s Tariff Workaround

Today's Newsletter is Brought to You by **Levity.ai**.

🍳 What's Cookin' In Freight

🏛 Senate Pushes English-Only CDL Testing Through New Legislative Package. Lawmakers introduced the Secure Commercial Driver Licensing Act on Thursday, marking the third Senate bill this year pushing English-only testing for commercial drivers. Sponsored by Sen. Tom Cotton of Arkansas and Rep. Andy Barr of Kentucky, the bill would require all CDL exams and renewals to be conducted in English and authorize the DOT to revoke a state’s licensing authority if it fails to comply. “For everyone’s safety, you must be able to read and understand English road signs when operating a commercial vehicle,” Cotton said. The measure consolidates earlier proposals from Sens. Roger Marshall and Ashley Moody, reflecting a coordinated Republican effort to legislate English proficiency nationwide.

💰 FMCSA Warns Brokers: Fall Below $75K and You’re Out. FMCSA has finalized its Broker and Freight Forwarder Financial Responsibility Rule, effective January 16, 2026, tightening enforcement of the $75,000 bond and trust requirement. The rule mandates immediate suspension of operating authority if a broker or freight forwarder’s financial security falls below $75,000 and is not replenished within seven days. FMCSA said the update “ensures more protection for motor carriers and shippers” and clarifies acceptable trust assets to include only cash, U.S. Treasury bonds, or irrevocable letters of credit. New penalties also bar noncompliant surety or trust providers from operating for three years, marking the agency’s strictest oversight yet of broker financial accountability.

🇲🇽 Importers Turn to Mexico’s Trade Zones for Tariff Relief. As new tariffs reshape North American trade, U.S. importers are increasingly using foreign trade zones (FTZs) and bonded warehouses in Mexico and along the border to reduce costs, according to FreightWaves. “People sometimes perceive FTZs as loopholes — they’re not,” said Andy Smith, COO of Source Logistics. “They’re tightly controlled by U.S. Customs and Border Protection and require licensing, audits, and background checks.” Source recently opened an FTZ in Laredo, allowing importers to “ride out tariffs or volatility” by storing goods indefinitely without paying duties. With Mexico’s exports up 3% this year and tariff rates climbing, FTZs are emerging as a critical, if costly, tool for supply chain resilience.

Brought To You By Levity

Levity automates high-volume email and phone tasks like quoting, load building, and track & trace, without black-box agents or risky AI experiments.

Designed for teams that need control, transparency, and results they can trust.

Built for high-reliability, high-volume workflows
Seamlessly integrates with inboxes, TMSs, and rate tools
Works quietly in the background with human-in-the-loop and clear fallback paths

Book a Demo

Truck Tariffs Locked In: 25% Duty Starts Nov. 1

Image Source: **Free Documentary/YouTube**

President Trump formally signed the proclamation invoking Section 232 of the Trade Expansion Act, imposing a 25% tariff on medium- and heavy-duty truck imports (Class 3–8) and a 10% tariff on buses, citing national security concerns. The tariffs take effect Nov. 1.

The White House says the move is about national security, not protectionism. Officials argue that dependence could cripple the country’s ability to respond to crises or supply the military if foreign supply chains falter.

"Offshoring has resulted in imports of medium- and heavy-duty trucks increasingly penetrating the U.S. market, with imports now accounting for approximately 43% of the trucks sold in America." – White House Fact Sheet

Key Details

Scope: Applies to trucks like cargo haulers, dump trucks, and tractor units, plus key parts such as engines, transmissions, tires, and chassis.
Offsets for manufacturers: U.S. truck assemblers can offset 3.75% of their tariff bill annually through 2030, essentially a rebate for domestic production.

Questions Answered

In our previous report, there were still a lot of unanswered questions, which caused debate about how much the impact would be felt in U.S. freight.

Let's break it all down:

Does the tariff hit Mexico and Canada?

Trucks built under USMCA rules only pay tariffs on non-U.S. content. Commerce will certify qualifying importers, while medium-duty trucks stay exempt until that process is ready.

Are companies double-taxed?

No. These tariffs don’t stack on top of existing steel, aluminum, or auto duties. The 25% stands alone.

Any manufacturer relief?

Yes. Truck and engine makers assembling in the U.S. get a 3.75% annual offset against tariff costs through 2030. The same perk applies to U.S. auto assemblers.

What about steel and aluminum tariffs?

Companies sourcing those metals from Canada or Mexico can see current 50% duties cut in half, if materials are smelted and poured there.

What It All Means

OEM shake-up: Import-heavy brands (Volvo, Hino, MAN) face higher costs; domestic builders (PACCAR, Navistar) could gain ground.
Parts pricing: Expect higher replacement costs on imported engines and transmissions early 2026.
Fleets & brokers: Equipment inflation may slow new-truck orders and tighten margins, especially for small carriers.
Supply-chain ripple: North American plants could expand assembly to capture tariff offsets, potentially lifting freight demand around those facilities.

U.S. fleets might soon pay more for imports, but truck builders that “buy American” just got a tariff-size advantage.

What's Next

The Supreme Court is set to hear arguments on Nov. 5 over whether Trump can legally use emergency powers (IEEPA) to slap tariffs like the new 25% truck duty.

"If they took away tariffs, then they've taken away our national security." – President Trump on if his administration loses.

Brought To You By OTR Solutions

Utilize funding options that fit your unique brokerage needs with OTR Solutions.

Unlock liquidity and create additional revenue opportunities
Flexible credit limits
Select from (1) Quick Pay funding, (2) Supply Chain Financing, or (3) AR Factoring

Take advantage of OTR Solutions’ industry-leading working capital solutions now made available within the Epay Manager platform. Leverage OTR’s flexible offerings directly inside your TMS.

Get Started

🌎 Around The Freight Web

😔 Mercedes Contract Ends. A 30-year partnership with Mercedes-Benz is ending for Averitt, affecting 200 trucking jobs (drivers, administrative support and leadership), tied to the automaker’s Tuscaloosa plant. The contract shift takes effect by year’s end.

🚂 CSX Earnings Drop. CSX reported a 7% earnings decline amid restructuring charges and weaker coal volumes. Quarterly revenue fell to $3.6 billion, with the railroad citing softer industrial shipments and inflationary cost pressures.

🎁 Holiday Freight Slowdown. Trucking firms expect a muted holiday season, with freight demand tempered by cautious consumer spending and excess retail inventories. Spot volumes are tracking below 2023 levels heading into November.

📲 Five ELDs Removed. FMCSA revoked five electronic logging devices, citing noncompliance. Fleets using the affected ELDs must switch to approved systems by December 16 to avoid out-of-service orders.

⚠️ SCAC Codes Rented. A r/FreightBrokers post claims brokers are renting out SCAC codes and UIIA policies so uninsured or unqualified carriers can haul port freight at cheaper rates. The post warned it’s “a race to the bottom,” comparing it to the future “renting of TWIC cards” to bypass port access rules.

🎣 THE FREIGHT CAVIAR CORNER

The Ultimate Freight Meme Champ: Boris Panov takes the crown in our Ultimate Freight Meme Competition with this final round win against Ari Levy. Catch the full replay on YouTube.
Shipper CRM: A FreightCaviar product built for brokers to find, track, and win shipper freight. Click here to learn more.
FreightCaviar Forum: We launched a forum for brokers, carriers, and freight tech pros to connect, share insights, and trade industry intel.
Manifest 2026: The Manifest: The Future of Supply & Logistics agenda is live, featuring 150+ sessions and 400+ speakers across three days of unmatched learning and networking. Save $200 on the current price with our special link.