ACT Research expects tariffs to extend the for-hire freight recession into 2026, following a temporary Q3 surge. Much depends on developments in the trade war in the coming months, as discussed in the latest release of the Freight Forecast: Rate and Volume OUTLOOK report.

“The ‘major questions doctrine’ is a legal argument the Supreme Court used to limit Biden’s authority on student loans and climate, ruling that federal agencies can’t make sweeping changes without clear congressional authorization. It was also cited by the US Court of International Trade when it ruled the IEEPA reciprocal and fentanyl tariffs unlawful in late May. These tariffs continue as the ruling is stayed.

“We think international trade is a major question, particularly for trucking, driving 16%-25% of U.S. surface freight volume,” shared Tim Denoyer, ACT Research’s Vice President and Senior Analyst. “With a historic backlog on the Supreme Court’s emergency docket, but no appeal of the stay at this point, it’s not likely to be decided before the court takes a few months off soon. But if the eventual appeal is successful, it could reduce U.S. import tariffs from around 20% currently to a high single digit percentage. At least significantly delaying these tariffs by sending the issue to Congress would improve the outlook for goods demand.

“By contrast, the Section 232 tariffs on steel & aluminum, currently 50%, are on firmer legal ground, which is affecting equipment supply. Both have significant implications for freight markets,” Denoyer concluded.

The monthly 61-page ACT Freight Forecast report provides analysis and forecasts for a broad range of U.S. freight measures, including the Cass Freight Index, Cass Truckload Linehaul Index and DAT spot and contract rates by trailer type for the U.S. and Canada. The service provides monthly, quarterly, and annual predictions for the TL, LTL and intermodal markets over a two- to three-year time horizon, including capacity, volumes and rates. The Freight Forecast provides unmatched detail on the freight rate outlook, helping companies across the supply chain plan with greater visibility and less uncertainty.