EL PASO — Businesses located along the United States-Mexico border have been experiencing uncertainty due to President Donald Trump’s fluctuating positions on tariffs over the past six weeks. In early March, a brief 25% tariff was imposed on goods entering the United States from Mexico, causing confusion among manufacturers, distributors, and customs agents in a desert industrial park near El Paso, Texas. Amid inquiries from manufacturers, logistical companies had no answers, while inventory was held up in Juárez warehouses across the border.
Although the tariff was lifted for most Mexican shipments, a 25% tariff remained on metals and cars. Relief followed when Mexico was excluded from additional “reciprocal” tariffs, but the respite was merely temporary. Octavio Saavedra, president of EP Logistics, a cross-border logistics firm, expressed concern over the ongoing tariff on foreign steel and aluminum, which affected their client, a Mexican steel column manufacturer.
The steel company currently holds inventory in Mexico to avoid the tariff. The revalidation of USMCA certificates has become more critical to avoid the 25% tax on non-North American products. Saavedra highlighted the unpredictability of future tariffs under the Trump administration. Daniel Manzanares, director of the Santa Teresa International Export and Import Livestock Crossing in New Mexico, noted the momentary halt in cattle crossings caused by the March tariffs.
During a turbulent Wednesday amid global tariff announcements, there was uncertainty about additional tariffs on Mexico and Canada, which was later clarified by the White House. Jerry Pacheco, president of the Border Industrial Association, described the unpredictable environment as unmanageable for businesses. Pacheco pointed out the interconnected trade relationship, essential for the regional economy valued at billions, and discussed the concerns about potential impacts on investments in production and distribution facilities.
Jon Barela, CEO of the Borderplex Alliance, observed a pause in cross-border investments in sectors like medical devices and automobiles, driven by the uncertainty over tariffs. Similarly, Lane Gaddy, CEO of W. Silver Recycling, witnessed the challenges and inconsistencies brought by the March tariffs, noting the unsustainable nature of broad tariffs on Mexican imports. He asserted that maintaining the USMCA exemption was expected, reflecting concern over tariffs potentially hampering the U.S. economy. The article first appeared in The New York Times.