Tariffs, Trucks, and Strategic Leadership: Rethinking the Asset Lifecycle in a VUCA World

As transportation professionals, the recent surge in tariffs may feel like déjà vu. From the ripple effects of COVID-19 to supply chain breakdowns and geopolitical instability, these disruptions have become the norm—not the exception. Tariffs are simply the latest reminder of how fragile our interconnected systems can be.

So the real question isn’t, “Why is this happening?”
It’s, “Why weren’t we ready—again?”

For too long, the allure of short-term gains has overshadowed the need for robust, forward-looking strategies. Each global shock—whether driven by pandemics, war, or policy shifts—has reinforced a single lesson: We must embed strategic resilience into every aspect of transportation and fleet management.

We are entering an era defined by transformative forces: AGI, Agentic AI, increasingly hyper-sophisticated cyber threats, infrastructure deficits, EV revolution and autonomous vehicles, and yes, tariffs. These aren’t isolated risks. They are converging realities, and they demand a strategic shift in how we plan, procure, and operate.

Leading Through VUCA

As leaders, we often search for certainty.
But we must learn to embrace ambiguity and face a hard truth:

We live in a VUCA world—one shaped by Volatility, Uncertainty, Complexity, and Ambiguity.

I was introduced to this concept while working at the Department of Homeland Security during a leadership program. At the time, I questioned its relevance in business.

Days later, a magnitude 7.0 earthquake hit a small island. My team suspended all operations to support disaster response. Suddenly, VUCA wasn't academic—it was our reality.

Later, I was tasked with developing a Continuity of Operations Plan (COOP)—a strategy to ensure mission-critical government functions could continue even if Washington, D.C. were struck by a nuclear bomb. Sobering? Absolutely. But it was the clearest example I’ve seen of how essential scenario planning is to leadership.

Tariffs and the Transportation Sector: What’s at Stake?

Strategic resilience isn’t just about mindset—it’s about applying that mindset to every function we lead. Let’s bring it back to what’s right in front of us:

Tariffs and their operational impact on the transportation sector.

Asset acquisition costs are rising, with some estimates suggesting an increase of at least double-digit percent, translating to an additional $25,000 to $35,000 per Class 8 truck. This raises critical questions for fleet and finance leaders:

• What are the near- and long-term implications on your capital planning if current tariff levels persist or increase?
• Have you factored in the ripple effect of federal excise taxes, which add 12% to the cost of heavy trucks, and additional state-level taxes?
• What is your strategy for managing replacement parts inflation and sourcing components like tires, which may or may not be covered under USMCA provisions?

All this is happening while most fleet budgets are flat year-over-year—or slightly reduced. Leaders must revisit cost models, refresh TCO assumptions, and revalidate supplier strategies to stay competitive.

1. Acquisition: Move Beyond P × Q—Start with Strategic Need

The Challenge:

Acquisition is no longer just an exercise in unit price economics (P × Q). While cost per unit and total quantity remain vital, they must follow a rigorous determination of need—a step too often skipped.

Too many organizations acquire new assets even when utilization metrics show clear excess capacity. And few teams volunteer to part with underutilized vehicles—even when the data makes the case.

Best Practices & Solutions:

• Start with “Need”: Use internal data (utilization, out-of-service rate) and external drivers (sales forecasts, regulatory changes).
• Leverage Scenario Planning: Model the impact of tariffs, seasonal demand, and outsourcing options.
• Tier Your Capital Strategy: Prioritize mission-critical units. Delay or lease the rest.
• Cross-functional collaboration: Ensure alignment between fleet, field ops, finance, and sales before the RFP goes out.

2. Utilization & Maintenance: Maximize Uptime, Maximize ROI

The Challenge:

Assets that aren’t safe can’t be used. And assets that aren’t utilized don’t deliver ROI—especially under inflated acquisition costs. Still, many treat maintenance as a back-office expense instead of a performance driver.

Best Practices & Solutions:

• Dynamic Maintenance Planning: Shift from calendar-based PMs to telematics-based predictive maintenance.
• Right-Sizing Routes: Deploy high-efficiency vehicles to high-mileage jobs. Reassign older units to low-utilization routes.
• Shared KPIs: Align uptime and utilization targets across operations and maintenance teams.
• Train for Uptime: Teach frontline teams how their daily tasks support asset longevity.
• Cultivate a High-Performance Culture: Empower and Equip Your Entire Team: Recognize that maximizing asset utilization and ROI requires a skilled and engaged workforce across all relevant roles, from drivers and dispatchers to maintenance staff and operations managers. Invest in comprehensive training, provide the necessary tools and technology, foster a culture of accountability and continuous improvement, and empower your teams to contribute to asset longevity and efficient operations.
  • Attracting, developing, and retaining top talent across the board is fundamental to navigating the complexities of a VUCA world and achieving optimal asset performance.

3. Remarketing: Plan Resale Like You Plan Procurement

The Challenge:

Remarketing is too often an afterthought. But in a tariff-constrained environment, it’s a critical value lever. Post-pandemic overbuying has led to a crowded secondary market—depressing resale values just as acquisition costs rise.

Best Practices & Solutions:

• Time the Sale Strategically: Don't dump units based on age—sell based on market demand.
• Spec for Resale: Avoid overly customized builds that limit secondary buyer interest.
• Use Data: Track depreciation curves, auction benchmarks, and resale trends.
• Get Expert Help: Partner with remarketing professionals to optimize outcomes.

Final Thoughts: Plan Holistically, Execute Locally

Tariffs, inflation, and volatility are not passing events—they are embedded features of modern leadership. The solution isn’t to react faster. It’s to plan better.

Smart teams don’t just buy trucks—they design lifecycle strategies that:

• Align with business priorities
• Maximize total asset value
• Mitigate both financial and operational risk

And that’s exactly what today’s leaders must do.

Herbert Pruitt writes about leadership, transportation, fleet strategy, and operational resilience at Miles of Leadership.