The long lines at the Otay port of entry , between San Diego, United States, and Tijuana, Mexico, are no longer a constant; now they seem to be less-traveled territory after the tariffs imposed by the United States, which have affected one of the sectors that drives Mexico’s economy, such as trucking .
“You realize how bad the economy is when you’re the one chasing operators, saying, ‘Please give me freight.’ Now it’s the other way around. I bring everyone chasing me, saying, ‘Please give me freight to Los Angeles, even if it’s local.’” explained Gabriela Fernández , Trade & Logistics Manager at Tacna Services .
Before the tariffs, transportation companies were in high demand, but now the situation has changed, the specialist pointed out in an interview with T21.
The impact of the tariff imposition has led to an approximate 30% decrease in freigh
“Previously, holidays generated logistical congestion three days before, and even three days after; now, crossings are operating normally, indicating a drop in demand,” he said.
It is estimated that in 2023, the Otay border crossing processed more than $13.5 billion in exports and $37.4 billion in imports, as well as almost one million commercial trucks, according to data from the United States General Services Administration (GSA) , which reflects the importance of this border crossing for the economies of Mexico and the United States.
Manufacturing affected by tariffs
The logistics and manufacturing industry in Tijuana, Baja California, faces a difficult outlook due to tariffs imposed by the United States government, said Gabriela Fernández, who noted that the impacts also range from a decrease in industrial warehouse occupancy to supply chains .
“At the shelter —a company that provides comprehensive manufacturing and administrative management services to foreign companies—where I work, there are 71 companies; we used to be 75. This year, four closed, and those that did so were mainly due to the impact of tariffs. This impact generated instability. Almost all of the four that left were textile companies,” he emphasized.
It is worth remembering that on December 19, 2024, the Mexican government signed a decree to increase tariffs on manufactured goods by 35% and textile imports by 15%, in order to protect the national textile industry and prevent abuse of current provisions.
Impact on the supply chain
The effects of tariffs have reached the supply chain. Vacancy rates for industrial warehouses in Tijuana are between 25% and 30% , a drastic change compared to previous years, when demand outstripped supply.
“Before the tariffs, it was common to expand to Mexicali due to the lack of space in Tijuana. Now, when you tour industrial parks, it’s for rent, for rent, for rent, from all the companies that have left,” Fernández explained.
Tariffs, especially in sectors such as textiles and steel, have generated operational instability, and although companies have sought domestic suppliers to mitigate the impact , efforts have been unsuccessful. This lack of local supply has forced companies to explore options with countries with which Mexico has free trade agreements; however, the results have been limited.
The closure of companies has also led to significant job losses . In the case of Tacna Services, the departure of four companies represented a 5% reduction in its shelter operations , as its business model depends on the number of workers per plant. This impact adds to the pressure faced by other large companies in the textile sector, which are struggling to remain operational.
In addition to tariffs, new permits and regulations, especially in the textile sector, have affected the tariff rates of products manufactured in Tijuana. These measures seek to protect the national industry, but have generated additional costs for companies.
To address this crisis, companies have attempted to reduce operating costs. In this regard, Gabriela Fernández mentioned that they have negotiated with customs agencies and transporters to lower tariffs , achieving small but significant savings.
“However, the lack of domestic suppliers remains an obstacle. Companies also seek partners in countries with free trade agreements, although dependence on Asian suppliers, especially in textiles, limits these options,” he noted.
A temporary respite, but with uncertainty
The U.S. government’s 90-day tariff extension to Mexico represents temporary relief, but with uncertainty, Fernández said.
In light of this, the specialist emphasized the importance of strengthening domestic supply to reduce dependence on imports and indicated that the Mexican government should promote connections between companies and suppliers through initiatives such as industrial fairs in the states, which could help mitigate the impact of tariffs and revitalize local industry.
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