U.S./Mexico Cross Border

Supply Chain News

Increased Tariffs Imposed on Imported Automobiles and Parts

President Donald Trump issued a Proclamation on March 16, 2025, imposing import tariffs of 25% on all cars, light-duty trucks, and certain auto parts imported into the U.S. under Section 232 of the Trade Expansion Act of 1962 to protect national security. According to Cox Automotive, about 44% of new vehicles sold in the U.S. are imported. In 2024, the U.S. imported $219 billion worth of cars, a 4% increase from 2023, according to the trade data platform US Import Data. Mexico was the top source of imported vehicles at $45 billion, followed by Japan ($41 billion), South Korea ($38 billion), Canada ($28 billion), and Germany ($26 billion). Ports and auto Carriers are concerned about the potential impact on the logistics industry.

The new tariff does not apply to the U.S. content of USMCA (U.S.-Mexico-Canada Agreement)-compliant automobiles or automobile parts that are USMCA-compliant and imported from Mexico and Canada, which currently remain duty-free. Read more at Freightwaves tariffs and the White House Proclamation.

3PL Fined for Smuggling Fentanyl Chemicals Using De Minimis Law

U.S. Third Party Logistics Provider (3PL) IMC Pro International agreed to pay $400,000 to the U.S. Government, without admitting guilt, to settle allegations it helped Chinese chemical companies transship fentanyl precursors through the U.S. in violation of the Controlled Substances Act.

According to the U.S. Drug Enforcement Agency, IMC was listed as the company that shipped fentanyl-making chemicals to the U.S. on route to Mexico, where the chemicals are turned into street fentanyl in clandestine labs. Five boxes of chemicals were seized by authorities in Eagle Pass, TX, along the border with Mexico in 2023. The value of the contents was listed under $800, qualifying the parcels to enter the country under de minimis regulations, which means they are duty-free and subject to minimal inspections. As part of an investigation published last year, Reuters purchased these types of chemicals from Chinese sellers to penetrate the shadowy supply chain of fentanyl precursor chemicals, stoking an overdose death toll approaching 450,000 American lives. Read more at AJOT.

DHL to Acquire CryoPDP, Health Care Logistics Provider

DHL announced that it has agreed to acquire CryoPDP, a white-glove specialty courier that provides logistics services to the pharmaceutical and biosciences industries, for $195 million. CryoPDP, based in Nashville, TN, operates in 15 countries and handles over 600,000 shipments annually for customers and patients in more than 135 countries. The acquisition is part of DHL’s plan to invest $2.2 billion in the high-margin healthcare vertical over the next five years. Investments will focus on improving infrastructure and technology, from the factory to the patient, including temperature-controlled storage, order fulfillment, distribution, global shipping, and last-mile delivery.

The health care logistics market is estimated to reach $152 billion next year, up from $130 billion in 2023. The other two major parcel carriers are also investing in healthcare logistics. UPS last year said it plans to double its revenue in healthcare logistics to $20 billion through organic growth and acquisitions by 2026. FedEx generates about $9 billion in annual healthcare revenue and is augmenting its technological capabilities to help track and monitor temperature-sensitive, high-value life science shipments. Read more at Freightwaves.

Nikola, Zero-Emissions Truck Manufacturer, Files for Bankruptcy

Zero-emissions truck maker Nikola, which filed for Chapter 11 bankruptcy protection in February, auctioned its Arizona headquarters and a 691,000-square-foot manufacturing facility to electric vehicle maker Lucid Group on April 7. Nikola, which launched production of its TRE Class 8 Battery Electric Vehicle in 2021 and its Class 8 Hydrogen Fuel Cell Electric Vehicle (FCEV) in 2023, along with the Hyla hydrogen fueling station network, has yet to find a buyer for its intellectual property rights, fueling stations, and vehicle stocks.  California drayage carriers, such as IMC Logistics, which purchased 50 Nikola FCEVs, are concerned about the availability of hydrogen fueling stations in California going forward.

ZM Trucks, a zero-emissions commercial truck brand, announced the establishment of a new SoCal regional headquarters and manufacturing plant in Fontana, CA. The new state-of-the-art 210,000 SF manufacturing plant will be capable of assembling up to 100,000 units per year, including electric commercial trucks, terminal tractors, and airport ground service equipment. Read more at Transport Topics Nikola and AJOT ZM Trucks.

Mexico Cross-Border Trade Uncertainties May Pause Border Industrial Real Estate Development

A report by Savills indicates that uncertainty in Mexico’s cross-border trade, stemming from U.S. tariffs and the upcoming renegotiation of the US-Mexico-Canada Agreement (USMCA) in July 2026, may pause the expansion of one of the fastest-growing industrial markets in the U.S. at the border. The Texas-Mexico border area, which spans 1,254 miles and various ports of entry, has seen industrial space inventory grow by 18% over the past five years. Manufacturers such as Eaton, Bosch, and First Brands, as well as 3PLs like Source Logistics, Kuehne + Nagel, Ryder, and Maersk, have recently established facilities in the Texas border region to support border trade, which surged to $540 billion in 2024. As risks adjust and decisions resume, the Texas border markets stand to benefit from the same factors that drove their recent growth: real estate and labor affordability, strong trade relationships with Mexico, and proximity to major Mexican manufacturing hubs and Texas Triangle cities. Read more at Savills.

CPKC Railroad Celebrates Opening of Cross-Border Trade Bridge

The Canadian Pacific Kansas City (CPKC) railroad celebrated the opening of a second span across the Ottensmeyer International Railway Bridge, which crosses the Rio Grande River and links Laredo, TX, with Nuevo Laredo, Tamaulipas, Mexico. Completion of the $100 million rail bridge with a total length of 1,170 ft expands capacity, allowing for bidirectional cross-border movements. Keith Creek, CPKC President and CEO, stated, “Completion of this internationally important project more than doubles our capacity to move freight through the border at the largest international trade port of entry in North America.”  The CPKC, which earns 41% of its revenue from cross-border shipments, is the only railroad that connects all three countries. The CPKC President says the threat of a trade war is overblown. The economies of the U.S., Canada, and Mexico are inextricably linked, and trade disputes will likely be resolved. If tariffs ultimately make U.S. markets less attractive to Canadian and Mexican companies, then those exporters will look elsewhere, he says. In this scenario, CPKC could become a land bridge fostering trade between Canada and Mexico. Read more at railwayage.com railway bridge and trains.com trade war.