Newly introduced tariffs are creating significant economic uncertainty for the bus and motorcoach industry by increasing the cost of parts. Suppliers, however, report no immediate disruptions in availability or inventory.
This was the key takeaway from a May 8 virtual town hall hosted by the United Motorcoach Association (UMA). Moderated by Scott Michael, UMA President and CEO, the expert panel featured Tim Barnes, Director of Sales at NFI Parts; Kevin Dawson, Vice President of Commercial Operations at Prevost; and Neil Wells, National Parts Manager at Temsa North America.
Impact of Tariffs on the Industry
The discussion stemmed from the newly announced “Liberation Day” tariffs, which affect imports from China, Canada, and Mexico, along with steel and aluminum products.
“Shipping traffic coming in from China has really dropped off,” said Michael. “Sixty percent of the ships scheduled from China have been canceled. This is part of a larger trend tied to the new tariffs. We’re concerned about disruptions, so we called on industry experts to share what they’re seeing.”
Supply Chain Stabilization Post-Pandemic
Panelists acknowledged that supply chain disruptions caused by COVID-19 are largely behind them in 2025.
“Post-COVID supply issues were surprisingly long-lasting,” said Barnes. “But in 2025, we’re finally seeing the industry stabilize. Operators are reporting better conditions, and that’s the metric that matters most.”
Dawson added, “Our backorder rate is now down to 3.2%, a significant improvement from the pandemic’s peak.” Wells echoed similar sentiments, stating, “We carry some emotional residue from the pandemic years, but operationally, the challenges are largely resolved now.”
Rising Costs and Pricing Pressures
Though availability has stabilized, the panel agreed that tariff-induced cost increases are impacting businesses.
Barnes revealed that NFI Parts implemented a price increase on May 12 due to supplier cost hikes and import duties. “We’re facing a dual challenge of rising supplier prices and higher duties. While we adapt to these conditions, our goal is to minimize any long-term impact on operators.”
Both Dawson and Wells noted that their companies’ minimal reliance on Chinese suppliers has shielded them from the worst effects of the tariffs. “Prevost, as part of the Volvo Group, operates under strict cybersecurity restrictions, minimizing exposure to Chinese sourcing,” Dawson explained. Wells highlighted that Temsa’s suppliers had already diversified, reducing dependence on one region. “Pricing volatility, not availability, remains the bigger challenge,” said Wells.
Steady Strategy Over Panic Buying
The panelists urged operators to remain calm and avoid reactive purchasing.
“We have to learn from what we experienced during the pandemic,” Dawson said. “Let’s not stockpile inventory like we did toilet paper. Plan your maintenance, stick to what you know your fleet needs, and keep cash flow in mind.”
Wells supported this measured approach, stating, “Focus on keeping essential maintenance items on hand but don’t unnecessarily tie up capital. These tariffs could be reversed in a matter of months, as seen in 2018.”
Diplomatic discussions involving the U.S., Canadian, and Mexican officials may also lead to renegotiations of trade terms, potentially easing tariff burdens in the short term.
Proactive Advocacy by UMA
The UMA is actively advocating for tariff relief, calling on Congress to implement an exclusion process for motorcoach-related products.
“These tariffs risk significant harm to small businesses and working-class Americans relying on motorcoach transportation,” emphasized Michael. “They jeopardize affordability, service availability, and technological progress. Congress must act swiftly to mitigate these impacts.”
Practical Tips for Navigating Tariff Uncertainty
The panelists closed the discussion by sharing actionable advice for operators navigating this challenging period:
- Plan ahead for maintenance: Identify and stock needed parts for scheduled upkeep.
- Avoid overbuying: Conserve cash by sticking to immediate requirements and trusted supply channels.
- Stay informed: Keep abreast of tariff updates and maintain open communication with suppliers.
“This industry is incredibly resilient,” Barnes said. “We’ve weathered economic swings, supply shortages, and a global pandemic. We’ll get through this, too — as long as we stay informed and work together.”
United Motorcoach Association members can access a replay of the panel discussion through the member portal under “Member Services and Benefits.”
Source: Bus and Motorcoach News
Customer Reviews
Thanks for submitting your comment!