Newly imposed tariffs by the Trump Administration are driving up parts costs and creating economic uncertainty in the bus and motorcoach industry, though suppliers report no immediate disruptions in inventory or availability.
That was the consensus among industry experts during a May 8 virtual town hall hosted by the United Motorcoach Association. The panel, moderated by UMA President and CEO Scott Michael, 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.
The discussion followed the Trump Administration’s announcement of sweeping new tariffs on imports from China, Canada and Mexico, as well as on steel and aluminum products.
President Donald Trump’s “Liberation Day” tariffs announced in April have created considerable turmoil in the markets and disruption in supply chains, along with many questions.
“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.”
Just got over COVID disruptions
All three panelists agreed that the supply chain issues stemming from the COVID-19 pandemic are now largely in the past.
“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 said Prevost’s backorder rate is down to around 3.2%, compared to as high as 9% during the pandemic. “From a COVID standpoint, I’m not concerned,” he said.
Wells agreed: “While we still carry some emotional residue from those early disruptions, I think we’re well past the operational challenges of the pandemic. We’ve moved forward, and we’re not seeing those issues now.”
Although replacement parts remain readily available, the panelists acknowledged that rising costs from tariffs are beginning to affect the bottom line.
Barnes said NFI Parts has been hit with higher supplier pricing and import duties, prompting the company to implement a parts price increase on May 12.
“It’s twofold,” he said. “Our suppliers are raising prices, and we’re paying more in duties. That’s a cost we simply can’t absorb long-term. But this is a quickly evolving situation, and we’ll be responsive to conditions as they change. Our hope is to reduce any increases as soon as we can.”
Dawson and Wells said their companies have minimal exposure to Chinese sourcing, helping them avoid the brunt of the tariff impact so far. Dawson noted that as part of the Volvo Group, Prevost is already restricted from sourcing many components from China due to cybersecurity concerns.
Wells added that many of Temsa’s suppliers had already diversified their sourcing. “Some vendors who used to rely on China have shifted to other regions. We’re not seeing a shortage of parts. The bigger concern is pricing volatility,” he said.
Don’t panic, panelists say
All three panelists urged motorcoach operators to stay calm and avoid reactive purchasing strategies.
“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 echoed that advice: “Now is not the time to overextend. Make sure you have your critical maintenance items on the shelf, but don’t tie up capital unnecessarily. There’s a chance these tariffs could be reversed within months, especially if negotiations follow a similar timeline to what we saw in 2018.”
Both Dawson and Wells noted that recent meetings between U.S., Canadian, and Mexican officials could lead to modifications of current trade terms.
“There’s a lot of diplomatic activity happening behind the scenes,” Wells said. “Our goal as a company is to mitigate costs where we can and minimize the impact to our customers. That requires flexibility and smart forecasting.”
While suppliers are adapting, UMA is calling on federal lawmakers to step in. The association is urging Congress to support an exclusion process for motorcoach-related products in order to prevent unnecessary financial harm to operators and riders.
“These tariffs will have damaging consequences for the countless small businesses and middle- and working-class Americans who rely on motorcoach transportation,” Michael said. “They will raise costs for businesses, reduce service availability, and stymie safety and technology advancements. UMA urges Congress to act quickly.”
In closing, the panelists offered practical guidance for operators navigating the uncertainty:
- Plan ahead for scheduled maintenance. Stock the parts your fleet likely will need in the short term.
- Avoid overbuying. Don’t let fear dictate purchasing decisions — conserve cash and rely on trusted supply channels.
- Stay informed. Watch tariff developments and communicate frequently with your 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 watch a replay of the panel discussion by clicking here and then clicking on Member Services and Benefits.
