U.S.-Canada trade negotiations collapsed just hours before a deadline to avert steep new tariffs, sending the two countries into an escalating trade dispute that could ripple through trucking, automotive manufacturing and cross-border supply chains.
The United States imposed 50% tariffs on billions of dollars of Canadian goods beginning at 12:01 a.m. ET Saturday after negotiators failed to reach an agreement Friday. The affected imports include products ranging from cement and dairy products to hockey sticks and other goods.
Canada is the second-largest trading partner of the United States, behind Mexico. In June, cross-border freight between the U.S. and Canada totaled $67.9 billion, according to the Bureau of Transportation Statistics. The two countries have deeply integrated supply chains, particularly in motor vehicles, machinery and energy products such as crude oil.
Canada has announced plans to retaliate against U.S. imports beginning Sept. 8, setting up the prospect of another round of tariff escalation between two of the world’s most integrated trading partners.
U.S. Trade Representative Jamieson Greer on Monday blamed Canada for the breakdown, saying negotiators appeared close to an agreement Tuesday before Ottawa sought additional concessions during the final stages.
“We progressed to a point Tuesday night where we had enough agreement among the parties to announce that we had … found the way to a deal,” Greer told CNBC. But as negotiators worked to finalize the agreement, he said the Canadians “wanted more.”
Canadian Prime Minister Mark Carney offered a sharply different account, saying the Trump administration was making last-minute changes that Canada considered unfair and economically unacceptable.
Heavy-duty trucks emerge as sticking point
One of the disputes with direct implications for the freight industry involved tariffs on medium- and heavy-duty vehicles.
Mark Wiseman, Canada’s ambassador to the U.S., said Canada wanted medium- and heavy-duty vehicles included in tariff relief, while Washington resisted lowering tariffs on those vehicles, according to Bloomberg.
The issue affects automakers including General Motors and Ford, which operate manufacturing facilities in Canada. Wiseman said Canada wanted to protect its domestic assembly industry covering passenger vehicles, light trucks and medium- and heavy-duty trucks.
The Trump administration’s proposed agreement would have offered tariff reductions covering Canadian steel, aluminum, automobiles and lumber, according to Greer. Canada ultimately rejected the terms.
Cross-border supply chains face new uncertainty
For companies moving goods between the two countries, the biggest question may be whether the tariff escalation lasts days, weeks or becomes a longer-term feature of North American trade.
Dave Townsend, a partner in Dorsey & Whitney’s International Trade Group, said businesses are waking up to a dramatically different tariff environment.
“The biggest question now is whether this is a temporary tariff hike or will last for some time,” Townsend said in a statement. He said both governments have a strong incentive to continue negotiating rather than allowing tariffs and countermeasures to spiral.
Augustine Lo, an international trade attorney at Dorsey & Whitney, said the new tariffs represent a major departure from the largely duty-free trade businesses have come to expect between the United States and Canada since the North American Free Trade Agreement took effect in the 1990s.
Lo warned that Canadian retaliation could have repercussions across roughly $800 billion in annual goods trade between the countries, along with about $100 billion in services trade.
Whether Washington and Ottawa return to the negotiating table before Canada’s retaliatory tariffs begin Sept. 8 remains uncertain. Wiseman said communications between the two governments are continuing, but declined to say whether Canada is prepared to formally restart negotiations.
Why it matters: The collapse of U.S.-Canada negotiations turns a threatened tariff fight into a real cross-border cost, potentially disrupting hundreds of billions of dollars in annual trade while creating new uncertainty for trucking, automotive and industrial supply chains.
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U.S. Customs and Border Protection officers found more than $9.5 million in suspected methamphetamine inside a commercial detergent shipment entering Texas.
The discovery happened Aug. 11 at the Roma International Bridge, according to a CBP announcement. A 2012 tractor-trailer arrived from Mexico carrying the declared load. Officers directed the vehicle to secondary inspection for additional screening.
CBP used nonintrusive inspection equipment while examining the commercial shipment. A canine team also assisted officers during the search. Authorities then discovered packages concealed within the detergent load. The inspection ultimately uncovered 240 bundles containing suspected narcotics.
More than 1,000 pounds discovered
The packages contained 1,071 pounds, or 485.78 kilograms, of suspected methamphetamine. CBP estimated the narcotics had a street value exceeding $9.57 million. Officers seized the drugs following the discovery.
“Drug smugglers sometimes try to hide in plain sight, but our frontline CBP officers remain vigilant,” Port Director Andres Guerra stated. He oversees the Roma Port of Entry. Guerra credited technology and experience with helping personnel identify the contraband.
The Roma International Bridge connects Roma, Texas, with Ciudad Miguel Alemán, Tamaulipas, Mexico. Commercial vehicles use the crossing to transport freight between both countries. This seizure involved a tractor-trailer carrying a declared detergent shipment into the United States.
Driver and tractor-trailer transferred to police
CBP officers turned the driver, tractor-trailer and suspected narcotics over to the Roma Police Department. Local authorities opened a criminal investigation following the seizure. The federal announcement did not identify the person operating the vehicle.
CBP also did not announce criminal charges in its release. The agency provided no information about the shipment’s origin beyond its arrival from Mexico. Officials did not identify a shipper, carrier, broker or intended recipient.
Authorities also provided no details explaining how the narcotics entered the detergent shipment. The announcement did not identify any additional suspects or organizations connected with the load. Investigators may release further information as the criminal case develops.
Why It Matters
Commercial shipments can provide concealment opportunities for large quantities of illegal drugs moving through international freight channels. This case shows why border inspections remain important even when documentation and declared cargo appear routine.
Click here for more articles on cargo theft and freight fraud by Phil Brink.
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Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week in Borderlands Mexico: Criminal groups keep pressure on Mexican freight networks; Nuevo León posts $17B in IMMEX exports through May and Mitsubishi Logistics invests $40M in US warehouse expansion.
Criminal groups keep pressure on Mexican freight networks
Mexican authorities say cargo theft targeting trucking companies is declining nationwide, while Overhaul and recent industry warnings suggest organized criminal groups continue to keep pressure on freight operators across some of the country’s busiest logistics corridors.
Guillermo Briseño Lobera, commander of Mexico’s National Guard, said cargo thefts involving trucking companies are projected to decline 37% in 2026 compared with the 6,263 incidents reported in 2025, according to La Jornada.
Authorities have recorded 2,519 cargo thefts so far this year, continuing a downward trend that has seen the crime fall 52.07% between 2018 and 2025.
Briseño said the federal government’s Balam highway security strategy has contributed to the decline. The program, which operates in 12 states, helped reduce cargo theft incidents by 37.19% between 2024 and 2025 while increasing recoveries of stolen cargo vehicles.
Authorities also reported significant reductions along several major freight corridors, including the Mexico-Querétaro route, where cargo theft fell 85.7%, the Mexico-Puebla corridor, where thefts dropped 90%, and the Mazatlán-Culiacán highway, where officials reported no cargo theft incidents.
However, new data from supply chain risk management firm Overhaul’s Mexico Q2 2026 Cargo Theft Report shows cargo theft remains one of the country’s most significant supply chain security challenges.
Central Mexico remains cargo theft epicenter
Overhaul found that 76% of cargo theft incidents involved violence, underscoring the continuing threat facing drivers and fleets operating throughout Mexico.
Cargo theft activity remains heavily concentrated in central and western Mexico, Overhaul said.
The company’s second-quarter analysis found that 77% of cargo theft incidents occurred in the Center and West regions of the country, accounting for 46% and 31% of reported thefts, respectively.
The State of Mexico, Puebla and Guanajuato remained the three most affected states during the second quarter, accounting for nearly half of all cargo theft activity nationwide.
The State of Mexico represented 18% of incidents, Puebla 17.9% and Guanajuato 10.8%. Overall, 86.3% of Mexico’s cargo theft incidents were concentrated in just 10 states.
While theft activity declined in Puebla and the State of Mexico compared to a year ago, Overhaul reported increases in Guanajuato, Veracruz, San Luis Potosí, Jalisco, Michoacán and Tlaxcala.
Criminals targeting food, fuel and agricultural products
Food and beverage shipments remained the most frequently targeted cargo category during the second quarter, accounting for 30% of thefts, followed by miscellaneous freight (11%), auto parts (9%), construction and industrial products (9%) and fuel (7%).
Overhaul said agricultural cargo theft showed one of the largest increases year over year. Agro-related thefts increased by four percentage points, with fertilizers and pesticides among the most targeted products. Auto parts theft rose three percentage points, while fuel theft increased two percentage points.
Most thefts occur during business days and evening hours
Cargo theft patterns remained highly predictable during the second quarter.
Overhaul reported that 85% of cargo theft incidents occurred Monday through Friday, with criminal activity peaking between Tuesday and Friday. The highest-risk period was between 6 p.m. and midnight, accounting for 31% of incidents, while two major theft windows emerged between 3 a.m. and 7 a.m. and between 6 p.m. and 10 p.m.
Organized crime groups continue evolving tactics
Recent enforcement actions highlight the continued sophistication of cargo theft organizations.
Mexico’s Secretariat of Security and Citizen Protection announced Aug. 15 that federal authorities arrested three suspects linked to a criminal cell accused of cargo theft, express kidnappings of truck drivers and the corruption of local officials along freight routes in Veracruz and Puebla.
Authorities said the group operated along the Federal Highway 150-D corridor connecting Puebla and Veracruz, one of Mexico’s most important trucking routes.
Nuevo León posts $17B in IMMEX exports through May
Nuevo León recorded more than $17 billion in exports under Mexico’s IMMEX manufacturing program during the first five months of 2026, an 8.9% increase compared to the same period a year ago, according to a news release.
State officials said Nuevo León accounted for 16% of Mexico’s total IMMEX exports from January through May, highlighting the region’s importance to the nation’s export-oriented manufacturing sector.
The state also ranked first nationally in IMMEX employment, with more than 401,000 workers employed by IMMEX companies as of May 2026.
The export figures were highlighted by Nuevo León Gov. Samuel García during a presentation on the state’s economic performance. García said Nuevo León continues to lead Mexico in attracting new domestic and foreign investment and remains the country’s top manufacturing state, accounting for 12.7% of national manufacturing GDP.
Nuevo León, home to Monterrey and hundreds of manufacturing facilities, has been one of the biggest beneficiaries of nearshoring investment in Mexico, particularly in automotive, industrial, electronics and logistics sectors.
Mitsubishi Logistics invests $40M in US warehouse expansion
Mitsubishi Logistics is investing $40 million to develop two large-scale distribution centers in the U.S. as part of a strategy to expand its overseas real estate and asset-turnover business, according to Nikkei Asia.
One of the projects will be a 710,000-square-foot distribution center in Houston, Texas, which is scheduled for completion in July 2027. The second distribution center, to be located in Alabama, is expected to be completed in June 2027.
Mitsubishi Logistics Corp. is a major Japanese global logistics and real estate company founded in April 1887. It is a key member of the Mitsubishi Group, according to its website.
Why it matters: Mexico’s cargo theft problem appears to be improving on paper, but the persistence of violent thefts, organized criminal networks and shifting tactics means shippers, carriers and cross-border logistics providers still face significant security risks across key freight corridors.
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Border Patrol and Hidalgo County deputies found 20 people inside a tractor-trailer at an Edinburg, Texas, truck stop. A K-9 response followed a report about suspicious commercial equipment. Officers took the driver into custody immediately. Authorities conducted the joint operation Aug. 20.
U.S. Border Patrol’s Rio Grande Valley Sector published the announcement Friday. The agency called the episode “a life-endangering human smuggling attempt.” Its post did not identify a carrier or trucking company. No cargo information appeared in the release.
K-9 alert prompts search
Officials deployed the canine after receiving a report about a suspicious commercial rig. The alert prompted agents and deputies to inspect the vehicle. The team found 20 people concealed inside its trailer. Deputies took the driver into custody at the scene.
Border Patrol wrote, “Those who endanger lives for profit will be found, arrested, and held accountable.” The quote appeared in the agency’s public notice. Authorities named no suspected organization. The release identified no additional suspects.
Officials have not released the driver’s identity, stop name or destination. The agency provided no ages, nationalities, cargo details or medical information. Authorities have not announced charges. Its notice identifies no carrier or trucking company.
The Hidalgo County Sheriff’s Office directed FreightWaves to U.S. Border Patrol for additional details. The newsroom has requested comment from that agency. Officials have not released documents beyond the original announcement. FreightWaves will update this story when authorities provide further material.
Why It Matters
A human smuggling investigation unfolded at a Texas truck stop, a daily operating point for commercial freight. The release names neither a carrier nor cargo, yet criminal activity intersected with routine trucking operations. That distinction matters for fleet operators, brokers, shippers and truck-stop staff who may encounter suspicious activity before authorities arrive.
Click here for more articles on cargo theft and freight fraud by Phil Brink.
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CBP finds $15M in meth hidden in celery load at Pharr, Texas, border crossing – FreightWaves
Police recover $258K copper load from stolen J.B. Hunt trailer in North Carolina – FreightWaves
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The hardest part of putting a proven engine into a new commercial vehicle has never been the engine itself. It is teaching that engine where it lives among the sensors, onboard computers and control modules that fill modern commercial vehicles.
GM Powered Solutions is selling a shortcut, announced at ACT Expo earlier this year. The automaker’s business-to-business propulsion group has rolled out a commercial vehicle ECM built for its 6.6-liter heavy-duty gas engine. It’s aimed at on-road applications from companies that never put a GM badge on the hood. The module ships with a GM-approved base engine calibration already loaded and is designed to function as a ready-to-run testing package.
An ECM is the engine’s computer. In GM’s words, it decides how the engine responds to different driving and load conditions.
For integrators, upfitters and fleets spec’ing step vans, work trucks and last-mile delivery vehicles, the real value shows up on the development calendar. Programs that once started with a dead engine and a blank controller can now start with a running one.
Turning fuel to noise
The package exists because customers told GM the opening stretch of engine integration was the most punishing and the least differentiated work in the whole program.
“We listened to our customer saying, ‘Hey, I really need a launching pad. I don’t know what it takes to get an ECM to a state where we can turn fuel to noise — run the engine. It’s very technical, it’s very unique to that specific engine, and we just don’t know how to do that,’” said Anthony Locano, technical specialist and on-highway lead application engineer at GM Powered Solutions.
GM’s answer is what Locano calls a foundational starting point package.
“Because every application has its own requirements, we have to be thoughtful about where we apply our engineering and calibration resources,” Locano told FreightWaves. “When we’re certifying an engine, it has to meet a defined set of requirements, so it isn’t practical to tailor the production solution for every application. So we got really scrappy and unique with this ECM.”
Locano has been with General Motors since 2013. Before that he worked in heavy-duty trucking as a diesel and aftertreatment calibrator and in on-road and off-road applications like marine, industrial and generator-set applications running 14-liter engines and larger.
What changes for integrators
The controller is tailorable. That capability is new for external customers.
“What’s unique about this controller is that it can be tailored, meaning if a customer wants to add content to it for specific vehicle-related features or functionality, they have that ability,” Locano said. “That is something we haven’t been able to do in the past. That’s what makes this very unique.”
Engines do not arrive in a vacuum. Every calibration depends on the hardware the vehicle maker chooses, and that hardware changes with the chassis.
“Our controller is not specific to any exhaust system or air induction system, all these are inputs the go into building this calibration. They’re vehicle-dependent,” Locano said. “An air induction system or exhaust system out of one of our trucks isn’t going to work for a step van. It’s all integrated; our engine is integrated into another chassis.”
“The vehicle has to interface with the ECM. Now they can do that. They can tailor this specific ECM to communicate with their vehicle without a gateway and have that one piece tailored to their specific application,” he added.
A starting point, not a certified product
Buyers need to understand the certification boundary. “With this controller we’ve taken it to a point where it’s up and running for engine dyno only. ,” Locano said.
In practice, the customer installs the engine in a test cell and fires it at full power right away. Emissions calibration stays on the customer side because the intake and exhaust hardware is theirs.
“We tuned for performance, but it needs to be tuned for emissions, and that exhaust and intake system are required,” Locano said. “That’s customer-specific and unique to dial in the calibration for emissions and for certification purposes.”
“It’s only a starting point; it’s not a certified product,” he said. “But what it will do is jumpstart their development. They come to the table not starting from ground zero. They’re actually starting from a place of a running engine, and that can jumpstart development in the test cell.”
“There’s a lot of time saved in that initial development, and they can really focus on the meat and potatoes of integrating the engine into the vehicle and generating the data and making the changes required for emissions in the test cell,” Locano said.
Room left for hybrid applications
GM built spare capability into the hardware for powertrains that are not on the order sheet yet.
“Maybe they want to do a hybrid. From a hardware capability standpoint, the ECM has additional I/O, additional pins and widgets that can make other possible powertrains work in the future,” Locano said. “We tried to future-proof the package for opportunities that aren’t in scope right now.”
A shift to take advantage of Good Manufacturing Practices
The group is not built for small orders.
“We’re a B2B group, so we don’t do onesies and twosies out of our group,” Locano said. “The work required to do one engine versus ten thousand, in terms of providing information and executing a program, the work is the same. But we leverage high volume production coming off the line today.”
GM Powered Solutions sells propulsion across marine, industrial, off-road and on-road commercial applications. Parts and service run through GM’s Customer Care and Aftersales network, dealers and ACDelco distributors. GM has powered boats for more than 100 years.
Nobody specs the brain
Locano’s pitch to buyers is straightforward: the controller is not an accessory to the engine purchase. It is the thing that makes the purchase work.
“Put it this way: without the ECM, the engine is a paperweight in today’s world,” he said.
That reality often gets buried under everything else on a spec sheet.
“A lot of people don’t think about the amount of work it takes to bring a certified product to market. There’s a lot of work, a lot of integration work,” Locano said. “When we work with these external customers, they’re going to have a unique vehicle architecture.”
“Even with an engine, we’re not talking about carburetors anymore. It’s very complicated,” he said. “We’re trying to reduce that complication by offering this ECM to get them to a place where they can focus on that integration effort — taking it from a foundation to a production piece.”
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RoadOne IntermodaLogistics announced it has acquired Higgins Transport Service, a Charleston, South Carolina-based provider of port drayage and intermodal transportation services.
The deal adds 15 drivers to RoadOne’s Charleston operations along with additional drayage and intermodal capacity to serve the Southeastern market.
Financial terms of the transaction were not provided.
RoadOne recently opened a 384,000-square-foot facility in Summerville, South Carolina to serve the Port of Charleston. The 100-acre property provides transloading, storage and distribution services across the Southeast. The company plans to add a 279,700-square-foot warehouse on the property next year.
The company directly operates nearly 5 million square feet of warehouse and transloading space, with access to another 85 million square feet of space through partnerships.
“The addition of Higgins Transport Service strengthens our commitment to providing unmatched service throughout the Southeast global trade corridor and supporting all of our customers’ supply chain needs,” said JC Carruthers, executive vice president at RoadOne.
Randolph, Massachusetts-based RoadOne is a single source for intermodal, drayage, warehouse and logistics services. The asset-based provider has more than 2,500 drivers at over 100 port, railroad and truckload terminals throughout the U.S.
RoadOne is backed by Ridgemont Equity Partners and Nonantum Capital Partners.
“We are proud to have built an operation that attracted a partner like RoadOne, and we are excited about what the future holds as we leverage RoadOne’s national platform to serve our clients and drive future growth,” said Justin Higgins, owner of Higgins Transport.
Why it matters? The deal demonstrates an ongoing trend of consolidation and infrastructure build-out within critical port markets. It expands RoadOne’s port drayage capabilities and broader supply chain services across the Southeast global trade corridor.
More FreightWaves articles by Todd Maiden:
- Teamsters reveal TP Freight’s sudden shutdown
- Truckload linehaul rates rip higher in July, Cass says
- J.B. Hunt’s ‘summer of many minibids’
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