Mexican truckers using B-1 visas to illegally transport domestic loads within the U.S. are destroying American trucking companies and pushing freight rates to unsustainable lows.
Key Takeaways
- Mexican truck drivers on B-1 visas are illegally performing domestic U.S. hauls, violating cabotage rules and undercutting American drivers
- American trucking companies are shutting down as they cannot compete with the drastically lower wages paid to foreign drivers
- Both U.S. and Mexican carriers are establishing shell companies to facilitate this illegal employment scheme
- The American Trucking Associations is urging President Trump’s administration to crack down on visa violations at weigh stations and border checkpoints
- This practice is estimated to cost American truckers thousands of jobs and millions in lost wages
B-1 Visa Abuses Devastating American Trucking Industry
Widespread abuse of the B-1 visa program has created a crisis in America’s trucking industry as Mexican drivers are illegally performing domestic hauls at rates far below what U.S. carriers must charge to remain profitable. Under proper use of these visas, foreign drivers are permitted to transport loads from Mexico into the United States but are explicitly prohibited from moving freight between points within the U.S. This restriction, known as the cabotage rule, is being systematically violated across the southern border region, with the highest concentration of violations occurring along major freight corridors from Texas.
“Look at I-35 coming out of Laredo: All you see is the Mexican trucks coming across going north, and nine out of 10 trucks are B-1 drivers; it’s just getting out of hand,” said a fuel hauler who has witnessed the problem firsthand.
American Companies Closing Under Impossible Competition
The economic impact on U.S. trucking firms has been devastating, with many small to mid-sized carriers forced to shut down operations entirely. These companies simply cannot compete with the artificially low rates offered by operations using B-1 visa drivers, who typically earn significantly less than their American counterparts. The wage disparity creates an uneven playing field that has rippled throughout the industry, pushing down freight rates for everyone and making it increasingly difficult for law-abiding companies to survive in the current market.
“I closed in December, because I saw what was going to happen now. There was no reason to try and keep up with the B-1 drivers’ nonsense. No one really understands what’s happened, and there’s too many interests in between,” said Reed, a former trucking company owner.
Shell Companies Facilitate Illegal Operations
Investigations have revealed that both U.S. and Mexican carriers are involved in sophisticated schemes to circumvent cabotage restrictions. Some American companies have established subsidiaries in Mexico to recruit and hire B-1 visa holders, while certain Mexican carriers have created shell operations in the United States. These arrangements create the appearance of legality while enabling the illegal movement of domestic freight by foreign drivers. The practice has become so widespread that it’s dramatically reshaping freight economics in border states.
“If you are using Mexican B-1 drivers to haul domestic loads, that is illegal. It’s another reason why the market has been bad,” said Bob Costello, Chief Economist at the American Trucking Associations.
Industry Leaders Call for Enforcement
The American Trucking Associations (ATA) has made addressing cabotage violations a top priority for 2025. ATA President Chris Spear has formally appealed to the Department of Transportation to strengthen enforcement mechanisms at weigh stations and other checkpoints. The American Transportation Research Institute (ATRI) has also included cabotage enforcement among its five critical research priorities for the coming year, recognizing the significant threat these violations pose to legitimate American trucking operations.
“FMCSA’s safety monitoring and enforcement must be bolstered to eliminate fraudulent CDL training providers,” said Chris Spear, President of the American Trucking Associations.
President Trump Takes Action
President Trump has already taken decisive steps to address aspects of this problem through an executive order reinstating federal English language proficiency requirements for commercial drivers. This measure, described as “Enforcing Commonsense Rules of the Road for America’s Truck Drivers,” aims to improve highway safety and eliminate drivers who cannot communicate effectively with law enforcement, customers, or other road users. Further actions to specifically target B-1 visa violations are expected as part of the administration’s broader effort to protect American jobs.
The administration’s focus on strengthening border security and protecting American workers aligns perfectly with the trucking industry’s calls for stricter enforcement of existing labor laws. With thousands of American trucking jobs at stake and countless businesses facing unfair competition, the urgency for addressing this systematic abuse of the B-1 visa program has never been greater. Industry leaders remain hopeful that coordinated enforcement between transportation agencies and immigration authorities will finally bring relief to an industry that forms the backbone of America’s supply chain.
