May 29, 2025

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Companies and consumers will face the consequences.

Welcome to Issue #017 of The Sidekick!

Tariffs are again dominating the headlines, with the Trump administration ramping up its pressure on Apple, Walmart and other companies to build factories in America or face the consequences. But who will ultimately “eat the tariffs?” Companies or consumers?

In other news, we look at the potential for self-driving trucks to save our supply chains from a worsening driver shortage by 2030. 

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Let's get into Issue #017...

25% tariffs could mean a hefty price tag.

The Trump administration has ramped up its efforts to pressure big companies like Apple and Walmart to bring their manufacturing back to the U.S. The latest move? A hefty 25% tariff threat on iPhones if they don’t start making them stateside.

But what does this mean for everyday consumers?

Trump has been vocal about his expectations for Apple. He made it clear that if the tech giant keeps producing its products overseas (mainly China, but more recently India) CEO Tim Cook will face steep tariffs. In a recent post on Truth Social, he said he expects iPhones to be made in the U.S. or else. And it’s not just Apple under the hammer; Samsung and other tech companies might be next on the list.

Treasury Secretary Scott Bessent has pointed out concerns about the risks of relying on foreign production, especially when it comes to semiconductors. While these ideas might resonate with some, the immediate impact on consumers could be rough.

Analysts are warning that if Apple decides to shift production to avoid those tariffs, we could see iPhone prices skyrocket to around $3,500. That’s a serious hit to the wallet, especially when folks are already dealing with inflation and rising costs.

Walmart isn’t sitting comfortably either. CFO John David Rainey recently said that the company might have to raise prices due to these tariffs, noting that the magnitude of increases is more than any retailer can absorb. This reflects a broader worry among retailers that consumers will ultimately end up paying more.

In response to Walmart’s concerns, Trump told them to "eat the tariffs," insisting they shouldn’t pass those costs onto customers. As the administration pushes for reshoring, it’s worth noting that Apple has pledged to invest over $500 billion in the U.S. over the next four years, but up to 90% of iPhones are still assembled in China. Plus, Apple anticipates an additional $900 million in costs in the current quarter due to the looming tariffs.

So, who will end up “eating the tariffs”? Consumers or companies?  It looks like we’re about to find out just how tricky that balance is between national interests and what we can realistically pay.

Are self-driving trucks the answer?

The trucking industry is facing a significant challenge: a projected shortage of 160,000 drivers by 2030. With the American Trucking Associations (ATA) highlighting this issue, it’s clear that something needs to change. But as we grapple with these numbers, there’s a glimmer of hope on the horizon: self-driving trucks. 

Companies like Daimler Truck and Torc are gearing up to hit the U.S. market with SAE Level 4 autonomous trucks by 2027, just in time to potentially ease some of the pressure from this looming driver deficit.

Before diving into the tech solutions, let’s break down what’s causing this shortage.

Aging Workforce and Retirements

Many truck drivers are aging, with an average age of 46 years. A significant number will retire in the next 10 to 15 years, and unfortunately, younger workers aren’t stepping up to fill the gap. Many prefer blue-collar jobs that offer more stability and a better work-life balance.

High Turnover Rates

The trucking industry has a staggering turnover rate of over 90% among long-haul drivers in large companies. Long hours and time away from home make the job tough, leading many drivers to hop between carriers or leave the profession entirely.

Low Pay and Unpredictable Income

Most drivers are paid per mile, which means their earnings can fluctuate due to traffic, delays, and weather. While some drivers make between $50,000 and $80,000 annually, the unpredictable pay structure can discourage many from sticking around.

CDL Licensing Challenges

Getting a Commercial Driver’s License (CDL) is no walk in the park—it can cost between $3,000 and $7,000 for training. With few paid apprenticeship opportunities, many potential drivers can’t afford the upfront costs. Plus, federal laws prevent drivers under 21 from driving across state lines, limiting recruitment.

Health and Lifestyle Concerns

Long hours on the road, limited healthy food options, and little time for exercise can lead to health issues like obesity and fatigue. These challenges contribute to burnout and early retirements.

Few Women in Trucking

Women make up only about 8% of truck drivers, often due to safety concerns and workplace discrimination. The industry has been slow to create an environment that encourages more women to join.

Industry Regulations

Federal regulations like Hours of Service (HOS) limits and Electronic Logging Devices (ELDs) aim to improve safety but can also restrict drivers' ability to work efficiently. Many drivers feel these regulations complicate their jobs without improving pay or working conditions.

So, how can self-driving trucks help?

Daimler Truck and Torc’s plans to introduce autonomous vehicles by 2027 could provide a timely solution to the driver shortage. These SAE Level 4 trucks will be able to handle the entire driving task between freight hubs, which could really enhance business operations and manage increasing freight volumes.

Daimler and Torc have promised us an SAE Level 4 truck by 2027. Here’s what that means:

While we’re unlikely to see a significant number of autonomous trucks hitting the roads all at once in 2027, the potential benefits are huge. Autonomous trucks could improve efficiency, reduce accidents, and help keep supply chains moving, even when there aren’t enough drivers on the road.

With technology that never tires, these trucks could be a game-changer for the industry.

Keeping a pulse on the industry.

Answering six frequently asked questions.

Clear and concise answers to frequently asked questions pertaining to understanding group purchasing organizations and how the concept of group purchasing can work for your business.

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