Tariffs drive job losses at Mexico’s border factories

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Tariffs drive job losses at Mexico’s border factories; Echo Global Logistics joins U.S. Customs trade security program; and Mexico sets record with $34B in foreign investment over two years. 

Mexico’s maquiladora industry is facing mounting pressure from U.S. tariffs, with factories shedding tens of thousands of jobs in June.

The Manufacturing, Maquiladora, and Export Services Industry (IMMEX) program reported a 2.4% year-over-year decline in employment, with 76,800 jobs lost in June. Total employment across IMMEX factories dropped to 3.2 million workers.

The manufacturing sector saw a 2.9% reduction in personnel, while subcontracted workers fell sharply — down 22.7% compared to June 2024.

The monthly statistics overview was produced by Mexico’s National Institute of Statistics and Geography.

For decades, maquiladoras—factories run by foreign companies in Mexico that primarily export goods back to their home countries—have been a major driver of Mexico’s industrial output and employment.

About 6,530 maquiladoras, most concentrated along the U.S.-Mexico border, employ over 3 million people making products such as medical devices, consumer goods, electronics, aerospace parts and automotive components.

Industry analysts say the latest downturn is linked to new U.S. trade measures, including tariffs imposed June 13 and a 25% tariff on automotive goods introduced earlier this year.

“It’s a worrying situation because no improvements are seen in the short term,” Marcelo Vázquez, state delegate for Chihuahua in the National Association of Importers and Exporters of the Mexican Republic, told El Diario. “On the one hand, the tariff war continues and is affecting the maquiladoras. On the other hand, minimum wage increases are still being projected, and that’s what has affected us here on the northern border.”

Despite the decline in employment, wages for IMMEX workers rose. The average monthly salary increased 5.1% year-over-year in June to $1,174.13.

Echo Global Logistics Inc. has been certified as a partner in the Customs-Trade Partnership Against Terrorism (CTPAT) program, the company announced Wednesday.

The voluntary program, administered by U.S. Customs and Border Protection, requires participants to implement security measures and ensure their business partners follow similar protocols. In exchange, certified companies receive benefits such as fewer cargo inspections, training opportunities and enhanced information sharing with federal officials.