The 25% tariffs on Canada and Mexico are set to go into effect on March 4 unless further delays are established, and state governments are bracing for the potential downstream economic impacts. Border states in particular may be most impacted by the retaliatory tariffs and rising costs for importing goods from Canada and Mexico, given the vast, binational economies in each region. In response, some states have begun to focus on tariffs through legislative vehicles. This includes California’s S.B. 263, which would require state agencies to study the impacts that potential future increases in new tariffs and reciprocal tariffs on international trade might have on the movement of freight. Although states have little power in this fight, we expect to see more legislation and actions on tariffs in the coming months.

Below is an overview of state-level legislation and regulations moving through state capitals that would have a significant impact on the wholesale distribution industry. As previously reported, these proposals range from issues on labor, warehousing, taxes, trucking, and artificial intelligence (AI).