Small and medium-sized logistics companies in Tijuana, Mexico's land port city bordering the United States, have faced unprecedented challenges since the Trump administration imposed additional tariffs on steel and aluminum products from this neighboring country. In the first 11 months of 2024, the bilateral trade volume of goods between the U.S. and Mexico reached 776.04 billion U.S. dollars, marking a 5.2 percent year-on-year increase. From January to February 2025, trade activity remained strong, with an estimated value of around 138 billion dollars. However, Tijuana whose economy relies on industrial real estate, processing and export, as well as warehousing and logistics is no longer as busy as it once was. Earlier this month, U.S. President Donald Trump signed an executive order on the so-called "reciprocal tariffs," imposing a 10-percent "minimum baseline tariff" and higher rates on certain trading partners. According to the White House, for Canada and Mexico, goods compliant with the United States-Mexico-Canada Agreement (USMCA) will continue to face a 0 percent tariff. Non-USMCA compliant goods will be subject to a 25 percent tariff, while non-USMCA compliant energy and potash will face a 10 percent tariff. "The first impact that we see, at least here -- the border between Tijuana and San Diego -- is a very clear reduction of the number of operations crossing through the border," said Israel Delgado, vice president of the National Chamber of Freight Transport of Mexico. Data from the San Diego Municipal Government indicates that approximately 570 processing and export-oriented enterprises in Tijuana and surrounding areas provide over 100,000 direct jobs. Across Baja California State, employment in the transportation and warehousing industry reached approximately 437,000 in the third quarter of 2024. The capricious U.S. tariff policies have made it difficult for Mexican businesses to develop effective strategies. Some companies have been forced to postpone investments, while the livelihoods of hundreds of thousands of workers are now under threat. "To be honest, it does have an impact on us. Since some of us earn commissions, fewer transport trips mean less income," said a truck driver in Tijuana. "Many trucking companies are being out of market in the last three months. The small companies will suffer. The more this uncertainty continues, the more struggling will be for the small and medium-sized trucking companies," Delgado said. The 25-percent additional tariffs imposed by the U.S. on Mexican steel and aluminum products took effect on March 12. In the first week after their implementation, exports from the Mexican border city of Ciudad Juarez to the U.S. dropped sharply by approximately 40 percent. Many small and medium-sized logistics companies are now facing serious operational difficulties due to the shrinking volume of transportation. "Aluminum got stopped. Textiles got stopped from December," said Juan Manuel Hernandez Niebla, executive director of the logistics company Grupo Loginam. Even so, Juan remains optimistic, saying that despite current trade tensions, Mexico will remain essential to U.S. manufacturing. "I don't think the U.S. can become a manufacturing country again, so they're going to need Mexico to do that." he said. According to statistics, Mexican products are exported to more than 150 countries worldwide, but the North American market still accounts for about 80 percent of its foreign trade. The Mexican government is promoting diversification toward markets in Europe, Asia, and Latin America through new free trade agreements and industrial support plans. However, it is difficult to fundamentally reduce reliance on the U.S. market in the short term. SHOTLIST: Tijuana, Mexico - Recent 1. Containers by roadside seen from moving car; 2. Truck running on road seen from moving car; 3. Enterprise zone seen from moving car; 4. SOUNDBITE (English) Israel Delgado, vice president, National Chamber of Freight Transport of Mexico: "The first impact that we see, at least here -- the border between Tijuana and San Diego -- is a very clear reduction of the number of operations crossing through the border."; 5. Various of trucks carrying industrial products by roadside; vehicles driving on road; 6. SOUNDBITE (Spanish) truck driver (name not given): "To be honest, it does have an impact on us. Since some of us earn commissions, fewer transport trips mean less income."; 7. Various of enterprise zone, vehicles; 8. SOUNDBITE (English) Israel Delgado, vice president, National Chamber of Freight Transport of Mexico (starting with shot 7): "Many trucking companies are being out of market in the last three months. The small companies will suffer. The more this uncertainty continues, the more struggling will be for the small and medium-sized trucking companies."; 9. Various of port scene; 10. SOUNDBITE (English) Juan Manuel Hernandez Niebla, executive director, Grupo Loginam: "Aluminum got stopped. Textiles got stopped from December."; 11. Various of workers working in warehouse; 12. SOUNDBITE (English) Juan Manuel Hernandez Niebla, executive director, Grupo Loginam: "I don't think the U.S. can become a manufacturing country again, so they're going to need Mexico to do that."; 13. Worker covering products with tarpaulin; 14. Truck carrying cars driving on road. [Restrictions: No access Chinese mainland]