Cuellar: We need predictability and transparency in trade policy

Thank you for being here, and a special thank you to my fellow panelists, Mayor Victor Treviño, Dante Galeazzi, Juan Jose Garcia, Eduardo Garza Robles, Jerry Maldonado, Monica Martinez, Jorge Cavazos, and Jose Gonzalez.

You don’t need me to tell you that Laredo lives and breathes trade. We’re not just a city on the map. We’re the largest inland port in the United States, processing over $800 million in trade every single day. More than 60% of US-Mexico, truck trade crosses through our port. 

Trade isn’t abstract to us, it’s warehouse jobs, customs brokers, truck drivers and small businesses that depend on reliable cross-border movement of goods. 

So, when tariffs are imposed, it doesn’t just hurt global markets – it hits our community first and hardest. On February 1, the administration declared trade emergencies with Mexico, Canada and China under the International Emergency Economic Powers Act (IEEPA). Over the following weeks, the White House imposed and then walked back multiple layers of tariffs, 25% on goods from Mexico and Canada, 10% universal tariffs and a staggering 145% tariff on Chinese goods as of April 10.

As of today, we face a 10% baseline tariff on all imports globally, on top of:

• 25% on steel and aluminum
• 25% on auto imports
• 25% on many Canadian and Mexican goods not covered under USMCA, including some energy products
• And retaliatory tariffs as high as 200% on some European products like wine and champagne. 

This patchwork of tariffs is unprecedented, and worse, it’s unstable. Within weeks, we’ve seen many reversals and legal rationales, ranging from Section 232 national security claims to emergency powers under IEEPA.

And there are several more tariffs under consideration, including

• 25% global tariffs on semiconductors and pharmaceuticals
• 25% on auto parts expected as soon as May 1
• And a new 1.5 million entry fee for Chinese ships

Local connection

Tariffs reduce volume. Every percentage point adds friction. Businesses slow their shipments or reroute goods entirely to avoid punitive costs. When that happens, Laredo’s trucks, warehouses and freight workers lose out – even if the goods aren’t destined for here. 

According to a Texas A&M International University report, our trade sector supports over 125,000 jobs, directly and indirectly. A universal 10% tariff, combined with the 25% auto and metals tariffs, threatens entire sectors – especially for small to mid sized customs firms and independent drivers.

Tariffs don’t come out of thin air. They are paid by importers, who pass those costs to consumers.

Whether it is car repairs, groceries, electronics, or home goods, families here are paying more – sometimes much more – at a time when inflation is already squeezing working people. 

Agencies like CBP and USPS have not been given clear instructions or infrastructure to implement this sudden flood of tariffs. According to internal reports, enforcement is uneven, leading to delays, confusion and inconsistent penalties.

And de minimis, which tries to prevent excessive bureaucracy for low value imports, has been ended for China, one of the largest exporters of de minimis products. The administration likely plans to end de minimis for all exporters as well. 

We need predictability and transparency in trade policy, not uncoordinated measures that penalize US communities. 

Laredo is resilient. We’re proud of our role in America’s economy. But we cannot become collateral damage in a trade war. And when tariffs are used without strategy or accountability, they hurts communities like ours first.

We must keep speaking up, keep pushing back, and keep demanding policies that reflect the realities border life and trade leadership. Thank you. 

Editor’s Note: The above commentary was prepared by U.S. Rep. Henry Cuellar for a speech at a conference he held at Laredo College on April 14, 2025. The conference was about tariffs.

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