American Trucking Associations announced that the current 25% tariff on certain imported goods from China would no longer be applied to 53-foot domestic intermodal containers.

In June, ATA told the Office of the United States Trade Representative that because containers are only made by two manufacturers, both located in China, that freight transportation companies would have no choice but to pay the additional cost because no domestic options existed.

The application of such a tariff would have a tremendous impact on the entire freight logistics industry, and on consumers, said ATA Chief Economist Bob Costello when describing ATA’s talks with the USTR. ATA estimated that the logistics industry would have paid an additional $63 million in the first year and nearly $750 million more over the next decade as a direct result of the tariffs if they were applied as originally announced.

“Trucking and trade are synonymous and we are happy with this most recent announcement by the United States Trade Representative that these 53-foot domestic containers won’t be subject to tariffs,” said Costello. “We appreciate Ambassador Lighthizer and the entire USTR for their willingness listen to ATA on this critical issue and we look forward to working with them to continue to advance U.S. trade interests and to grow our economy.”