Redwood Logistics and Redwood Mexico  announced the opening of its new office in Querétaro , Bajío, Mexico, which represents an important achievement in the company’s commitment to supporting nearshoringefforts and strengthening cross-border supply chains for its customers.

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Trade between Mexico and the United States faces a growing series of challenges, including unexpected tariff changes, more rigorous border crossing inspections, and insufficient infrastructure to meet demand.

Faced with this situation, manufacturers, retailers , and logistics operators are adjusting their strategies to maintain competitiveness. During the panel ” Cross-Border Conversations: Adapting to a Global Supply Chain ,” organized by Redwood , representatives from different sectors shared the lessons they are applying to keep their supply chains afloat.

For example, Joe McAbee, Vice President of Transportation at Daikin , described his company’s strategy in Monterrey, where they manufacture air conditioning systems, so to avoid being completely dependent on border crossings, they have opted for regionalized manufacturing , using components from local sources and from Asia.

However, the tightening of tariff policies has led them to consider certification under the United States-Mexico-Canada Agreement (USMCA) as a preventative measure to protect their operations.

He shared that his company has also grown strategically in Mexico, where they already have six factories and a seventh on the way.

McAbee cautioned, however, that in the face of threats such as new tariffs , responses must be cautious.

“You can’t compromise a long-term strategy by reacting to changes that might be temporary,” he said.

In the retail sector  , the pressure is different. For HEB , which imports perishable products from Mexico, every hour of delay at the border crossing can impact the freshness of the food.

Claudia Montemayor, the company’s international trade manager, noted that recent changes to Mexico’s militarized customs personnel have created delays and uncertainty .

HEB’s response has been to strengthen internal communication with biweekly meetings between the international trade teams in Mexico and the United States. The company seeks to anticipate problems and minimize the impact on prices and customer service.

For his part, Yuri García, Logistics Manager at Nidec , explained how his company has built an internal commercial compliance structure capable of reacting quickly to regulatory changes.

With nearly 800 import and export transactions per month , the company has implemented strategic inventories and immediate communication protocols between logistics, production, and customs agents.

“The important thing is that information flows at all levels,” García said.

This has allowed them to design action plans that minimize risks and ensure business continuity , even in the face of political and commercial volatility.

The pandemic experience also changed the rules for inventory management .

For companies like HEB, the strategy has been slightly different: maintaining critical safety inventories without becoming overloaded, all while keeping customer service as a central priority.

In this regard, the leaders agreed that today, more than ever, companies must be resilient , not only in the face of logistical or regulatory factors, but also in the face of market pressure and customer expectations.

In an environment where tariff changes can occur overnight and where crossing times become unpredictable, companies that manage to remain agile, informed, and collaborative will have a decisive advantage.

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MONTERREY, NL – Amid an environment fraught with trade uncertainty, shifting tariffs, a lack of infrastructure, and growing concerns about road safety , Jordan Dewart, president of Redwood Mexico , noted that cross-border logistics is not just about moving goods, but rather a constant challenge of planning, adaptation, and technological vision.

“Today, the biggest challenge in logistics between Mexico and the United States is uncertainty. Not only because of the tariffs being imposed and lifted, but also because of the lack of clarity for planning. Logistics requires organization and foresight, but we have been operating as if every day were an emergency drill,” Dewart said.

The situation is complicated by persistent structural challenges, such as an imbalance in export and import capacity, a shortage of drivers, and increasing road insecurity.

“It’s hard to convince a young person to become a truck driver if they know they could be a victim of robbery or violence,” Dewart said.

Given this situation, Redwood Mexico works hand in hand with its clients to design tailored strategies.

“Our focus isn’t on the assets, but on the customer. We understand their processes and build around them. We’re not the type to build a warehouse first, waiting for customers to arrive; we develop alongside them,” he said.

With a workforce of more than 200 employees in Mexico and operations exceeding 30,000 annual shipments , the company has a physical presence and covers key cities such as Monterrey, Querétaro, San Luis Potosí, and Mexico City, allowing them to understand and adapt to the cultural specificities of each region.

Continuous investment, commitment to Mexico

Despite the challenges, Redwood continues its expansion, and last month launched operations in a new office in Querétaro, with its formal opening scheduled for June.

“Mexico has everything: location, labor, resources, experience. Even if 25% tariffs were imposed, the supply chains are already here and can’t be easily moved,” Dewart said.

This comes in light of the uncertain outlook that has threatened the industry with tariffs from the U.S. government.

The executive also called for addressing two key issues to move forward: improving logistics infrastructure (roads, ports, customs systems) and ensuring security on transportation routes .

“It’s not just about asking the government for support. We must first accept that we have a problem; that’s the first step toward moving forward,” he asserted.

For Dewart, the future of trade between Mexico and the United States is full of opportunities, so “if we approach it with joint intelligence, we can replicate international best practices and build more efficient, secure, and connected logistics.”

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MONTERREY, NL –  Boy Scouts always have to be prepared, the same thing happens in logistics, you always have to be aware of all possible scenarios to be prepared , said David Eaton , vice president of the Northeast Division of the American Chamber Mexico .

Speaking at the Redwood Customer Advisory Board 2025 , David Eaton provided insight into the evolution of North American commerce , current challenges, and opportunities for regional growth.

He said that when the North American Free Trade Agreement (NAFTA) came into effect in 1994 , it coincided with key and turbulent moments in Mexico’s recent history.

Eaton emphasized that the integration of Canada, the United States, and Mexico is driven not only by economic reasons but also by geographic, demographic, and political ones.

“The future of North America is strong: natural resources in Canada, manufacturing and young talent in Mexico, and a strong consumer base in the United States,” he said.

However, he warned about the revision of the United States-Mexico-Canada Agreement (USMCA) scheduled for 2026, as ” it shouldn’t be a renegotiation, but it will be, ” he warned, alluding to the possible reelection of Donald Trump.

In this context, he called for the protection of the treaty, as it guarantees a legal framework for dispute resolution and creates certainty for foreign investment.

He was also critical of Mexico’s domestic conditions, noting that the country needs to implement a “self-help” strategy, reform its judicial system, invest in infrastructure, and resolve the energy crisis.

“Mexico must do better. We have lost investments due to a lack of electrical capacity,” he asserted.

Eaton shared examples of how companies can innovate even in the face of obstacles .

For example, from his position at Canadian Pacific Kansas City , he mentioned the development of new rail routes connecting Mexico to Canada, transporting everything from industrial products to snacks to Canadian supermarkets.

Regarding the region’s ability to handle the nearshoring boom , Eaton emphasized that while private rail investment has been key, Mexico needs to improve its roads, ports, and digital connectivity, as well as revitalize public-private partnerships.

“Public investment is essential. Private investment shouldn’t be a dirty word. We need the government and the private sector to work together, each from their respective positions, to build a superhighway of opportunity, shoemaker to your shoes,” he said.

On the other hand, Eaton was emphatic that without security there will be no growth and suggested that international pressure, especially from the United States, could give President Claudia Sheinbaum the opportunity to distance herself from the current government’s policies and return to a path of competitiveness.

“Globalization no longer means looking far, it means looking close. Regionalization is our present and our future. Personally, I believe there is a positive scenario for North America. One in which we move toward a kind of ‘Fortress America,’ where we recognize that Canada is not the 51st state, and that Mexico is not just the far south, but an essential part of an integrated region,” Eaton asserted.

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MONTERREY, NL— Cross-border logistics facesa series of constantly intensifying challenges, from border controls to freight security.

During the Redwood Customer Advisory Board 2025 , Jessica Solís, Director of Operations at Redwood Mexico , highlighted key topics such as tariff uncertainty, driver shortages, and freight security.

He also addressed the complexities of the border situation, particularly in the context of inspections , problems associated with organized crime, and the impact of immigration policies, which have increased congestion and delays in the crossing of goods.

Solís explained that border inspections, particularly at the El Paso crossing , have become more rigorous, partly as a result of immigration policy that seeks to stem the flow of substances like fentanyl into the United States.

Although he acknowledged that these inspections have not had a significant impact on reducing illegal trafficking, they have caused an increase in wait times and congestion.

“We’ve heard stories from several of our partners about how, for example, a driver crossing has to undergo inspections of both people and cargo. This creates delays, which has been a headache for many companies,” Solís said.

Cargo theft and security strategies

Security in the transportation of goods is another critical issue in Mexico that Solís highlighted as disruptive to the supply chain.

“In Mexico, cargo theft remains a reality, and we cannot ignore it,” he stressed.

Although Redwood Mexico handles approximately 30,000 loads annually and has had few incidents, Solís emphasized that cargo theft remains a constant problem, with alarming statistics such as approximately 84% of thefts being committed with violence .

To mitigate these risks, Redwood implements risk assessments and safety measures such as establishing approved stops and using technology to monitor cargo status in real time.

“In terms of security, it’s not only important to plan and anticipate, but also to have adequate cargo insurance, because if criminals really want to steal your cargo, they’ll do it no matter what,” Solís emphasized.

He also highlighted the importance of supply chain visibility as a crucial tool for managing the challenges of cross-border transportation.

“It’s not just about knowing where your truck is at 3 p.m., but about having a clear view of the entire supply chain, from loader to receiver,” he noted.

Complete visibility enables companies to identify and address issues more efficiently and reduce uncertainty in the logistics process.

Regarding emerging technologies, Solís believed that the key to improving efficiency in cross-border logistics is systems integration .

“The problem isn’t so much the technology itself, but the ability of systems to communicate with each other. If you fail to integrate all the actors in the supply chain, information becomes dispersed and you can’t make informed decisions,” he explained.

Solís added that while many companies are building their own internal systems, integration across technology platforms is essential for a continuous, real-time flow of information.

Mexico’s role in cross-border logistics

Despite the challenges, Solís remained optimistic about Mexico’s future as a U.S. trading partner.

“Mexico remains the United States’ largest trading partner, and while tariff and trade policy issues are important, the cross-border relationship remains strong. Foreign investment continues, especially in key sectors like manufacturing, although changes in the automotive industry could impact these dynamics,” he stated.

Despite the uncertainty, he noted that the key to thriving in this volatile environment is proactive planning, adaptability, and working collaboratively with supply chain partners to anticipate and address logistical challenges.

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MONTERREY, NL – In a context where political decisions translate into immediate impacts on supply chains , financial markets, and global economic stability, international trade is going through a moment of tension and redefinition.

During the Redwood Customer Advisory Board 2025 , Mark Yeager, CEO of Redwood Logistics , highlighted the industry outlook in the face of current international trade volatility, amid rising tariff tensions and a constantly adjusting global economy.

Yeager addressed the complex series of trade measures implemented by the Trump administration since February, including tariffs of up to 125% on Chinese-origin products and tariffs of between 20% and 60% on countries such as Japan, India, Vietnam, and Madagascar.

Although these tariffs were temporarily suspended and replaced with a single 10% tariff for a period of 90 days, the impact on the market and consumer confidence has been significant.

“The level of uncertainty we’re experiencing is something I haven’t seen in my 30 years of experience,” Yeager said.

Despite the uncertainty, he emphasized that Mexico has been excluded from the reciprocal tariffs , which represents a positive sign for bilateral trade.

“Mexico has smartly navigated this volatile environment, and its position as a reliable trading partner of the United States has been strengthened,” he said.

During the conference, Yeager contextualized the situation with historical data, indicating that while the United States has always maintained a certain tariff presence, current levels exceed even those recorded during the Great Depression.

“We’re talking about a tariff regime that could reach an average of over 26%, figures we haven’t seen since the beginning of the 20th century,” he emphasized.

Regarding economic indicators, he mentioned that real GDP grew by 2.5% in the last quarter , unemployment remains relatively low (4.2%), and real wages have reached their highest level in five years.

However, consumer sentiment has fallen 28% year-over-year, and markets have reacted negatively, with losses of up to 19.6% on the Nasdaq.

Yeager warned that the biggest enemy of trade and investment is not tariffs themselves, but uncertainty.

“If we truly want to revitalize American industry, we need clarity and confidence. The current instability discourages foreign investment and jeopardizes growth,” he said.

Yeager said that although the trade environment may be shaken, he is confident that the trade relationship between Mexico and the United States will emerge stronger.

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