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    Policy Shifts and Tariffs Clouding Cross-Border Commerce Forecasts

    – Impacts of President Trump’s Executive Orders and Tariffs Shape the Future of US-Mexico Trade, Says Redwood Logistics –  

    CHICAGO, IL & Monterrey, MX – May 15, 2025 – Redwood Logistics and Redwood Mexico, one of North America's fastest-growing fourth party logistics (4PL) providers, today released the Q2 2025 Cross Border Index, shedding light on the evolving dynamics of cross-border trade as new regulations and tariffs pose both challenges and opportunities for businesses engaging in US-Mexico commerce. 

    President Trump’s recent executive order enforcing existing English-language proficiency rules for commercial truck drivers is projected to significantly alter the landscape of US-Mexico cross-border logistics. This policy mandates that drivers must demonstrate English proficiency to read traffic signs, communicate with safety officials and adhere to employer protocols, citing national safety and efficiency imperatives. 

    “The sudden enforcement of this policy has created a heightened sense of urgency among customers reliant on cross-border operations,” said Jordan Dewart, President of Redwood Mexico. “Even though Mexico remains a key manufacturing hub, this new regulation could cause delays and increased operational costs for shippers relying on Mexican-based carriers.” 

    Under the directive, the Department of Transportation (DOT) is tasked with implementing stricter compliance inspections and strengthening commercial driver’s license (CDL) verification processes. While the policy aims to uphold safety on US roads, its implications for Mexican drivers, who dominate cross-border freight transport, could introduce considerable friction to trade. 

    This order, coupled with President Trump’s back and forth implementation of tariffs, places further strain on global supply chains, as many US businesses have established nearshoring partnerships with Mexican suppliers to maintain efficiency. Despite recent growth, with April 2025 cross-border commerce between the US and Mexico up 4% year-over-year to $73.77 billion, tariff threats and legislative developments could dramatically influence long-term operations.  

    “Cross-border commerce is experiencing a delicate balancing act,” added Dewart. “Despite challenges arising from policy shifts, we continue to see promising opportunities for businesses that adapt quickly. With Canada and Mexico excluded from reciprocal tariffs, there’s significant potential to establish a prosperous trade environment.” 

    Compounding current trade issues is China’s circumvention of tariffs by routing goods through Mexico before then exporting to the US. May 11th's rollbacks have lowered tariffs from 145% on Chinese goods direct to the US, to 30%. However, Trump’s tariff strategy is still causing uncertainty for future supply chain planning. While this deal likely means more commerce between China and the US during the initial 90-day period, it remains to be seen how Mexico will factor in if tariffs are once again raised. 

    Meanwhile, 25% tariffs on auto imports from Mexico threaten to further disrupt automotive supply chains, impacting not only cross-border relationships but also a global manufacturing ecosystem where cars and parts cross borders multiple times during production cycles. 

    Many are stockpiling inventory to avoid potential border delays and adjusting production timelines to stay ahead of disruptions. Diversifying supplier networks and utilizing foreign trade zones or duty-free regions are also helping businesses reduce tariff exposure while exploring new shipping routes. Additionally, advanced technology tools are providing clearer insights into the financial and operational impact of tariffs, enabling companies to better calculate total landed costs. 

    “While cross-border trade is undergoing significant change, Redwood continues to provide actionable insights and data-backed solutions to ensure uninterrupted operations and long-term success,” concluded Dewart.   

    For more information about Redwood’s cross-border perspective or to explore how our tailored logistics solutions can minimize the impact of shifting trade policies, visit here.  

    Additional Resources: 

    About Redwood 

    Redwood Logistics, a leading logistics platform company and modern 4PL headquartered in Chicago, has provided solutions for moving and managing freight for more than 21 years. The company’s diverse portfolio includes digital freight brokerage and flexible freight management all wrapped into a revolutionary logistics and technology strategy, a modern 4PL. Redwood’s 4PL strategy utilizes an open platform for digital logistics that empowers shippers to seamlessly mix-and-match partners, technologies and solutions into their own unique digital supply chain fingerprint. Redwood connects a wide range of customers to the power of supply chain management, technology and the industry’s brightest minds. For more information, visit www.redwoodlogistics.com. 

    Media Contact 

    Tyler Thornton 

    LeadCoverage 

    tyler@leadcoverage.com