🎣 Freight's New World Order

Happy Monday. Tariffs are reshaping global supply chains fast. From Shein rerouting inventory to Honda shifting production, what’s happening with U.S. trade policy is starting to show up in how and where freight moves. We break down the latest developments in today's feature.

Plus:

• 🔁 Aurora Using Humans
• 🇲🇽 Mexico's Cargo Theft
• 🕊️ G&G Trucking Murder
• ... and more.

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🐔 WHAT’S COOKIN’ IN FREIGHT

🔁 Aurora Reverses Course, Puts Human Back in Driver’s Seat. Aurora Innovation has reversed its driverless launch, moving a human observer to the front seat of its autonomous trucks at the request of manufacturer Paccar. The change comes just weeks after Aurora began its first commercial self-driving service in Texas. “We are confident this is not required to operate the truck safely,” CEO Chris Urmson wrote, citing over 2.7 million tests completed. The move follows reports that Paccar had concerns about prototype parts and was not fully aligned on commercialization timelines. Aurora still plans to expand operations to El Paso and Phoenix later this year.

🇲🇽 Cargo Crime’s Still King South of the Border. Despite official claims of improvement, AMESIS says over 2,000 cargo thefts hit Mexico just in the first two months of 2025 and 81% involved violence against drivers. Most thefts (62.6%) happened while trucks were in transit, with central Mexico being the top danger zone. Food, building materials, and auto parts (especially tires and electronics) are the top targets. Meanwhile: Bulkmatic is dropping $250M on a new intermodal terminal near Monterrey, Kingfa is investing $84M in a San Luis Potosi plant, and Amazon’s building a new last-mile station in Brownsville, TX. And if you're into this topic our FreightCaviar Mexico documentary drops in the next couple of weeks.

🕊️ Mississauga Trucking Company Owner Fatally. Harjeet Singh Dhadda, 51, co-owner of G&G Trucking Solutions in Mississauga, Ontario was fatally shot on May 15th after allegedly refusing a $500,000 extortion demand. His daughter told OMNI News the threats originated from India and were previously reported to police. “He said he’s not going to pay a single penny because he works for it,” she said. Dhadda was shot multiple times near his office. Peel Police recovered the suspect vehicle but haven’t confirmed the extortion claim. Canada’s trucking community is mourning a man remembered as “a pillar” for local carriers. The homicide investigation remains ongoing.

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Tariffs Are Rewriting the Freight Map

After a chaotic tariff escalation in April, where some Chinese imports were hit with duties as high as 145%, the U.S. and China reached a 90-day agreement in mid-May to dial things down.

The new baseline tariff on most Chinese goods?

• About 30%. It’s a relief, but temporary.
• Electric vehicles & solar panels are still facing tariffs of 100% and 50%.

For freight, that means front-loading is back.

• Importers are trying to squeeze in as many shipments as possible while tariffs are lower. But few believe the reprieve will last, it’s a wait-and-see window, not a reset.

Here’s a rundown of the latest reports from manufacturers and shippers:

👗 Shein’s Vietnam Move Is the Blueprint. Shein, one of the biggest de minimis winners of the past few years, has officially pivoted. It just leased a massive 15-hectare warehouse near Ho Chi Minh City. Why? Because Vietnamese shipments under $800 still qualify for duty-free entry into the U.S.

At the same time, Shein’s Chinese suppliers are beginning to relocate production to Vietnam, Turkey, and Brazil. They’re not abandoning China entirely, but they’re diversifying fast and that’s a trend you’ll see more of from any company exposed to tariffs.

🇲🇽 Mexico Is Winning (For Now). Thanks to the USMCA, most Mexican exports remain tariff-free. That’s made Mexico a massive beneficiary of this trade reshuffle and the U.S.'s #1 trading partner so far in 2025.

But even Mexico isn’t completely in the clear. Auto parts and steel are still facing 10–25% tariffs.

• That’s why companies like Nissan are reconsidering their North American strategy, with talk of moving some production back to Japan.
• Honda has already made the call its next-gen Civic hybrid will now be built in Indiana, not Mexico.

🏭 Everyone’s Adjusting. It’s not just automakers.

• Clorox is tweaking its product formulations and raw materials to offset a $100M tariff hit.
• Crocs yanked its 2025 guidance and accelerated sourcing shifts to Vietnam and India.
• Walmart is playing both offense and defense, leaning on its Mexican supply chain, absorbing some cost pressure, and investing in new stores and distribution centers closer to U.S. borders.

Walmart’s CEO: tariffs = higher prices.

CEO Doug McMillon says the company’s “doing its best” to keep prices down, especially on food. But with over 60% of U.S. suppliers being small businesses, the pressure’s going to trickle down. Fast.

Walmart CEO: ‘Higher tariffs will result in higher prices’

The big-box retailer vows to keep those prices as low as possible and is leaning into relationships with vendors to respond to a fluctuating market.

Supply Chain DiveKaarin Moore

That didn’t sit well with Trump...

He fired off a post telling Walmart to “EAT THE TARIFFS” and stop blaming them for higher prices, arguing the retail giant made billions and should absorb the costs instead of passing them to consumers.

🧱 Even Lego’s stacking new blocks in Virginia. Lego, which usually avoids the drama, is making moves. It opened a $1B factory in Vietnam this year and is building a 2 million sq. ft. distribution center in Virginia.

The goal? Reduce lead times and tariff exposure.

Their COO said it best: “Being close to core markets makes us more resilient.”

The origin points are changing. What used to come from Shenzhen might now leave from Ho Chi Minh, Monterrey, or even Indiana.

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🌎 AROUND THE FREIGHT WEB

📊 Brokerage Surge Post-2020. Kevin Hill via LinkedIn reported from 2020 to 2022, the FMCSA granted 25,286 new freight brokerage authorities and revoked 15,419, yielding a net gain of 9,867, a 167% increase over the prior three-year period. A crazy time indeed because it fueled both innovation and the rise of fraudulent activities.

🚔 Cocaine Bust at Border. U.S. border agents discovered $3 million worth of cocaine hidden behind rubber mats in a commercial truck at the Ambassador Bridge en route to Canada. The Brampton, Ontario-based driver has been arrested and charged in the case.

🏚️ C&S Bows Out in Baldwin. C&S Wholesale Grocers is closing its Florida DC, cutting nearly 500 jobs. No official reason was given.

⚖️ Misdemeanor, Not Felony. Jacob McDonald was found guilty of misdemeanor vehicular homicide but cleared of felony charges in a 2023 crash that killed a high school band director and injured students in Ohio.

🏗️ DOT Awards Cash for Infrastructure. The U.S. Department of Transportation has awarded $3.2 billion across 180 projects, funding improvements in highways, bridges, rail, and freight infrastructure nationwide.

🩺 Medical Submissions Go Digital. Starting June 23, 2025, DOT medical examiners will be required to electronically submit exam results directly to the FMCSA. Furthermore, after June 23 CDL and CLP holders will no longer need to submit their own MECs to SDLAs.

🎣 THE FREIGHT CAVIAR CORNER

🎙The FreightCaviar Podcast. Last month in Guadalajara, Ari and Paul sat down with Eduardo Chaim, CCO of VAX Solutions. Eduardo was one of the first hires at Coyote’s Guadalajara branch. In 2020, he co-founded VAX and they’ve been expanding aggressively ever since. VAX handles: domestic freight in Mexico, cross-border shipments, and inter-U.S. freight. But that’s not all, they’ve launched several logistics companies across Mexico, offering everything from brokerage to drayage with their own assets.

If you want a real look inside the Mexican freight market, this episode’s a must.

Listen now on Apple Podcasts or Spotify. The full episode will be up on our YouTube channel later today.

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