On January 20, 2025, Donald Trump was inaugurated as the 47th President of the United States.
This was the second inauguration of the businessman, who served his first term between 2017 and 2021.
During this administration, various policies were implemented that directly and indirectly affected cross-border freight transportation, some of which had significant implications for trade relations between the United States, Mexico, and Canada, especially within the framework of the USMCA.
The border wall
This is probably one of Trump’s most recurrent promises and speeches, since the last administration. Although it was not fully completed, it did lead to changes in land freight transport routes. Some of them are:
- On the Arizona border, the start of construction of physical barriers affected freight routes in areas such as Nogales and Sasabe.
- The border between San Diego and Tijuana has undergone changes. Although the infrastructure was already largely in place, the expansion of the wall affected freight routes, especially at the Otay Mesa crossing, one of the most important for trade.
- Texas was the state with the most barrier construction work, particularly in the Rio Grande Valley area and at the Laredo crossing, which is one of the most important for freight trade. The cities of El Paso and McAllen were also affected.
For example, the American Trucking Associations (ATA) estimated in 2020 that freight trade across the U.S.-Mexico border accounts for more than $1.7 trillion annually.
However, delays in the construction of border barriers led to a 5% reduction in freight transport efficiency, resulting in additional costs of $3.5 billion annually. This is just at the Laredo crossing.
Along these lines, a study by the National Federation of Freight Transportation Entrepreneurs (FENATAC) indicates that waiting times increased by 35% on average during the years of active construction of the wall, especially in areas such as McAllen, Texas, and Nogales, Arizona.
Tougher border security and control policies
Following the entry into force of the USMCA (agreement between Mexico, the United States and Canada), customs controls and corresponding inspections gradually increased, which had a direct impact on the transit time of trucks.
These regulations focused on combating smuggling, drug trafficking, terrorism and other security risks.
- X-ray and full-body scanner technologies were installed to inspect cargo without opening containers. This increased inspection times.
- Tightening of permits and cargo documents before crossing
- Inspections included verification of the type of merchandise
- Truck drivers must go through a background check process
All of these policies together had an impact on crossing times and efficiency. For example, Laredo is one of the most important crossings between Mexico and the United States. According to the Laredo Chamber of Commerce, wait times went from about 2 hours to 5 or 6 hours on average during peak inspection times in 2020.