Secret Deals Undercut American Truckers’ Pay

Two trucks driving on a wet road

Mexican and Canadian truckers with B-1 visas are illegally stealing domestic U.S. trucking jobs, contributing to a crisis that has shuttered American businesses and drastically lowered freight rates across the country.

Key Takeaways

  • Trucking companies are violating cabotage rules by using Mexican and Canadian B-1 visa drivers for domestic U.S. deliveries, directly taking jobs from American truckers.
  • B-1 visa drivers are paid significantly less than American truckers, undercutting U.S. businesses and depressing freight rates nationally.
  • Some U.S. companies are establishing shell operations in Mexico to facilitate this illegal hiring practice, circumventing labor laws.
  • The American Trucking Association (ATA) is urging the Department of Transportation and other federal agencies to strengthen enforcement of existing regulations.
  • President Trump’s executive order reinstating federal English language proficiency mandates for commercial drivers aims to address safety and national security concerns.

The Growing Crisis in American Trucking

The American trucking industry is facing an unprecedented threat as B-1 visa holders from Mexico and Canada increasingly take domestic trucking jobs intended for U.S. citizens. Under normal circumstances, B-1 visa holders are permitted to transport loads from Mexico or Canada into the U.S., but current regulations prohibit them from making deliveries between points within the United States. Despite these clear restrictions, evidence suggests widespread violations of these cabotage rules are occurring, creating a ripple effect throughout the domestic freight industry and threatening the livelihoods of American truckers.

“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.

This crisis has already forced some American trucking operations to close their doors permanently. The primary advantage these foreign drivers offer companies is simple economics – they accept significantly lower wages than their American counterparts. This wage disparity creates an unfair competitive environment where law-abiding American trucking companies simply cannot compete with those willing to break the rules by hiring B-1 visa drivers for domestic routes.

The Mechanics of the B-1 Visa Exploitation

The exploitation of the B-1 visa program in the trucking industry involves a complex network of both U.S. and foreign carriers. NAFTA provisions allow Mexican and Canadian drivers to deliver cargo originating from their respective countries to U.S. destinations. However, these same drivers are increasingly being hired to transport loads between points within the United States – a clear violation of cabotage rules. Some U.S. companies have established subsidiaries in Mexico specifically to facilitate this illegal arrangement, further complicating enforcement efforts.

“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 the fuel hauler.

The scale of this problem is evident along major transportation corridors, particularly I-35 coming from Laredo, Texas, where observers report overwhelming numbers of Mexican trucks heading north. The situation has created concerns not only about jobs but also safety, as recent incidents involving foreign drivers have included a fatal accident in Kentucky and property damage in Ohio. These incidents raise questions about the vetting and qualifications of these foreign drivers operating on American roadways.

Industry Response and Enforcement Challenges

The American Trucking Associations (ATA) has taken a strong stance against these illegal practices. ATA President Chris Spear has urged the Department of Transportation to address the issue through stronger enforcement measures. Industry experts suggest that enforcement could be improved by checking B-1 visa drivers at weigh stations and ensuring compliance with existing regulations. The problem is compounded by the fact that many of these drivers accept lower wages, creating an economic incentive for companies to continue these illegal hiring practices.

“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.

The American Transportation Research Institute (ATRI) has included cabotage violations among its top research priorities for 2025, recognizing the significant threat these practices pose to the integrity of the U.S. trucking industry. The research will specifically focus on the economic impact of these violations and their threat to American trucking jobs. Additionally, the ATA is calling for a review of enforcement related to English language proficiency standards and closer collaboration with DHS and ICE to address the misuse of B-1 visas.

President Trump’s Response and Future Outlook

President Trump has taken decisive action by issuing an executive order that reinstates federal English language proficiency mandates for commercial drivers. This order addresses both safety and national security concerns associated with foreign drivers operating on American roads without proper qualifications or oversight. The mandate is seen as a first step in a broader effort to protect American trucking jobs and ensure the safety of our nation’s highways.

“Enforcing Commonsense Rules of the Road for America’s Truck Drivers,” said President Donald Trump.

Looking ahead, the trucking industry faces significant challenges on multiple fronts. In addition to addressing cabotage violations, the ATRI’s 2025 research priorities include tackling rising insurance costs, evaluating entry-level driver training effectiveness, assessing the safety impacts of in-cab monitoring systems, and optimizing telematics for fleet performance. These initiatives reflect the industry’s commitment to maintaining high standards while protecting the livelihoods of American truckers against unfair foreign competition.