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Rob Carpenter shares what the non-domiciled CDL ruling means for fleets, compliance, and rates.
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Plus: An English-only CDL bill picks up steam, net details on FMCSA's broker crackdown, a Mexico tariff workaround, and more in today's newsletter.
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:
🏛 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.
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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
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.
Adriana Pulley
Let's break it all down:
Does the tariff hit Mexico and Canada?
Are companies double-taxed?
Any manufacturer relief?
What about steel and aluminum tariffs?
U.S. fleets might soon pay more for imports, but truck builders that “buy American” just got a tariff-size advantage.
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.
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😔 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
FREIGHT HUMOR
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A penny stock wiped $4.8B off C.H. Robinson's market cap yesterday. Plus: self-driving trucks are now running 1,000 miles nonstop, STG Logistics cleared a major bankruptcy hurdle, the FMCSA revoked nine ELDs, and more.
Here’s what’s trending across freight and logistics on X, LinkedIn, Reddit, and YouTube.
In just three years, we have moved from an industry that relied heavily on manual phone calls and emails to one where many of us use AI to some extent to support the above.
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