Leaders in the Transport and Trucking industry were taken by surprise by President Donald
Trump through a tweet on the 30 th of May about plans by the U.S to enforce new tariffs against
Mexico. Trump, in his tweet, wrote that on the 10 th of June, a 5% tariff would be imposed of all
goods into the U.S from Mexico until the illegal migrant issue is handled. He added that the tariff
is to continually but gradually increase by the rate of 5% to 25% every month until the illegal
migrants who pass through Mexico to the U.S stop.

Experts and economists noted that imposing of the tariffs would mean that prices of vegetables
and fruits would rise at the grocery stores, becoming a problem for the consumers for several
months. Rajeev Dhawan reiterated that the tariff would mean that consumers will spend a little
more on expenses at the grocery store. The tariffs will also lead to suppliers seeking other
sources of the same items from other countries. Trade between the U.S and Mexico accrued to a
total of $671 billion from both imports and exports in 2018, according to the U.S trade
representative.

Rajeev aired his fears claiming that instead of Trump’s move cutting off or at least lessening the
migration troubles, the tariffs were going to create an economic havoc in Mexico in comparison
to the effects in the U.S. Trade organizations that represent trucking and automotive industries
also raised their concerns claiming that the tariffs are going to adversely affect cross-border
businesses making trucks, cars and their parts expensive.

American Trucking Association released a statement requesting the White House and Congress
to be supportive of trade with neighboring countries since it’s a great way to have the citizens
with paying jobs in the trucking industry. Ken Hastings, an investor at Paccar, said that they operate in both Mexico and the U.S, but they are only interested in making trucks in places where they are sold, and therefore they major their operations in Mexico.

The Motor & Equipment Manufacturers' Association also noted that the tariffs were going to
negatively impact on the U.S's economy jeopardizing jobs and other investments since Mexico is
a large trade center for motor vehicle parts and a provider of lots of manufacturing jobs. The
Mexican President, Andres Manuel Lopez stated his plans to send a delegation to the U.S to have
Trump drop his threats. Trump had initially threatened to close the border but instead issued a
one-year warning.

Noel Perry, a trucking economist, said that Trump’s move is way much of politics than anything
to do with economics and it only leads to uncertainty. Randy Mullet, on the other hand, sees
Trump's move as a negotiation tactic and he, therefore, thinks when 10 th is due, Trump will drop
the tariff plans.