Trump Threatens Tariffs on Mexican Imports | Weekly News Update

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Tariffs Threatened on Mexican Imports in Response to Migrant Surge

US President Trump threatened to impose 5 percent tariffs on all Mexican imports to force the country to help control the amount of Central-American asylum-seeking families at the US-Mexico border.  The tariffs are set to go into effect beginning June 10 and will increase 5 percent each month until hitting 25 percent on October 1.  The tariffs will remain in place until the US feels Mexico took satisfactory action to prevent the migrants.  Mexican President Andrés Manuel López Obrador responded to Trumps tweets with a letter requesting deeper dialog on the migrant issue.  President Obrador does not feel that “social problems are not resolved with taxes or coercive measures,” and that Mexico is doing what it can to curb the flow of migrants across Mexico without violating human rights.

Oil and diesel prices decreased significantly after the announcement, adding to the uncertainty with the US and their trading partners.  On Friday, West Texas Intermediate (WTI) and Brent prices fell 5 percent and 7 percent respectively.  Diesel prices dropped over 2 percent or 5 cents per gallon.

Daimler establishes internal autonomous driving group

Daimler Trucks developed an internal organization called the Autonomous Technology Group.  The organization will focus on achieving level 4 automation for class 8 heavy duty trucks within the next decade.  To learn more about the levels of autonomy see our blog, The 5 Levels of Autonomous Trucking | Making the Leap.  Daimler is investing $556 million for the groups effort.  The plan is to research and develop the software and hardware to allow Daimler’s trucks to drive autonomously.  The first stage of testing will be targeted hub to hub applications in the US.

In Other News


WSJ: Refiners Poised for Boost From Clean-Fuel Rules

The oil refinery owned by PBF Energy near this Delaware Bay town was mothballed nearly a decade ago. Today it is running almost full-bore, and PBF and a business partner are spending $100 million to expand it.  The refinery is seeking to capitalize on new international rules that require cleaner-burning fuels on the world’s oceangoing ships starting Jan. 1.

WSJ: Amid Tensions, Iran’s Crude Buyers Jump Ship

One month after the Trump administration said it would tighten its ban on Iran’s oil sales, the country’s direct crude buyers have all but vanished, traders and executives in the Islamic Republic say.

Bloomberg: Trump Says U.S. ‘Not Ready’ to Make a Trade Deal with China

The U.S. isn’t ready to make a trade deal with China, President Donald Trump said while on a state visit to Japan.  “I think they probably wish they made the deal that they had on the table before they tried to renegotiate it,” Trump said Monday at a joint press conference in Tokyo alongside Japanese leader Shinzo Abe. “They would like to make a deal. We’re not ready to make a deal.”


Reuters: In rare release of economy data, Venezuela reports sharp GDP contraction

Venezuela’s central bank on Tuesday reported a sharp contraction of third-quarter gross domestic product, its first release of economic data in nearly four years by a nation struggling under hyperinflation and migration exodus of millions of citizens.

Reuters: Strong labor market boosts U.S. consumer confidence

Consumer confidence jumped in May as households grew more upbeat about the labor market, suggesting the economy remained on solid ground despite signs that activity was slowing after being temporarily boosted by exports and a build-up of inventories.


Electrek: Waymo resumes testing self-driving trucks in Phoenix, Arizona

Waymo’s autonomous technology can be adapted to other vehicles, with the Alphabet company last year detailing work on self-driving trucks. These larger AVs are now returning to Phoenix, Arizona for additional testing. That Growing Buzz is the Charge of Electric Trucking

Doubters who think the advent of electric trucks is nothing more than the freight industry’s nod to corporate sustainability should have peeked in at the Advanced Clean Transportation Expo held in Long Beach, Calif., last month.  The biggest truck names including Daimler, Volvo, Peterbilt and Kenworth all pitched electric trucks.

WSJ: Railroads Want to Move Faster. Shippers Are Paying a Price.

Railroads are getting more efficient, and their customers are paying for it.  Large railroads such as Norfolk Southern Corp. and Union Pacific Corp are moving quickly to streamline their operations, switching to fewer, longer trains that run on tighter schedules.

Reuters: Canada moves to ratify North American trade deal ahead of visit by U.S. vice president

Canada moved to ratify a new North American Trade deal by formally presenting it to parliament on Wednesday, less than 24 hours ahead of a visit by U.S. Vice President Mike Pence.


WSJ: Trump Threatens Tariffs on Mexican Imports in Response to Migrant Surge

President Trump said Thursday the U.S. would impose escalating tariffs on all Mexican imports beginning June 10, in an effort to push the country to deter the flow of asylum-seeking Central American families to the southern border.

HDT: Class 8 Truck Production to Taper Off By the End of 2019

Class 8 truck production is expected to continue growing for most of 2019, tapering off by the end of the year and into 2020.  This is according to the recently released report published by ACT Research.

JOC: Digital market aims to untangle US cross-border trucking

Cross-border truck traffic from Mexico is moving more fluidly in Laredo, with minimal delays compared with the eight- to 12-hour backups reported at the largest US border entry point for trucks in April. As a result, shippers and transportation providers are turning their attention from how to get stranded shipments across the border to how to optimize cross-border trucking through Laredo and other ports of entry in the Southwest.

Supply Chain Dive: Daimler establishes internal autonomous driving group

Daimler Trucks has created an internal organization called the Autonomous Technology Group which will focus on getting level four autonomous trucks on the road within the next decade. The group begins operations on June 1 and will invest about 500 million euros ($556 million) to accomplish its goal.

WSJ: U.S. Economy Remained Robust in First Quarter

U.S. economic growth remained robust in the first quarter, although fresh government data showed less business investment, a decline in corporate profits and muted consumer spending.

CBS News: Waymo resumes self-driving truck tests on Arizona freeways

After pulling its self-driving trucks off Arizona roads in 2017, Waymo said Wednesday it’s resuming tests of its autonomous tractor-trailers in the Phoenix area.


HDT: Trailer Orders Slow Down but Production Nears All-Time Highs

Trailer orders have declined through April, falling well below last year’s levels but production levels are near all-time highs as manufacturers are still working through last year’s orders, according to ACT Research.

WSJ: Logistics Operators Brace for Import Rush Ahead of U.S. Tariffs on Mexico Products

Some importers have started considering moving goods more quickly into the U.S. from Mexico to get ahead of threatened new tariffs, a logistics operator said Friday, raising the prospect of a shipping surge to border crossings already marked by heavy congestion and tight trucking and warehousing capacity.

This weekly publication is designed to highlight relevant industry news to provide professionals in the transportation, supply chain, and energy sectors with up-to-date information in a rapidly changing marketplace. This update is purely a compilation of industry news and as such, does not necessarily reflect the opinion of Breakthrough. We do not warrant or guarantee accuracy or completeness of information. For additional information, please contact us at

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