We’re pleased to share our latest “Crossing Paths: Insights into U.S. International Trade” research, which analyzes the impact of Section 232 tariffs on U.S.-Mexico trade during the first half of 2025.
Key Findings from January-June 2025:
Our analysis reveals a paradox: while Section 232 tariffs on steel, aluminum, vehicles, and auto parts generated $4.1 billion in tariff revenue, they triggered nearly $5 billion in lost trade value, a net negative impact on the economy.
The data tells a compelling story:
• Steel and aluminum imports decreased 13.6% ($873M decline)
• Vehicle and auto parts trade showed more resilience but still fell 6.1% ($4.1B decline)
• Port Laredo logistics sector alone lost $1.4 million in service revenue
Why This Matters:
These findings demonstrate that trade policy impacts extend beyond direct trade values. From reduced drayage and brokerage fees to diminished warehousing activity, the effects cascade through entire regional economies.
Understanding these dynamics is critical for strategic planning for the second half of 2025.
The full report provides detailed visualizations and analysis of how different sectors have adapted to these policy changes, with particular focus on Port Laredo’s role as a key trade gateway.
We welcome your thoughts and questions on these findings.
Feel free to share this research with colleagues who may find it valuable.
Best,
Daniel
Editor's Note: The above commentary was penned by Dr. Daniel Covarrubias, director of the Texas Center for Border Economic and Enterprise Development in the Sanchez School of Business at Texas A&M International University.
