American trucking jobs are being undercut by illegal cabotage practices as Mexican drivers on B-1 visas infiltrate domestic freight routes, leaving U.S. drivers struggling with plummeting wages and diminishing job opportunities.
Key Takeaways
- Trucking companies are violating cabotage rules by misusing Mexican B-1 visa holders to transport domestic loads within the U.S., bypassing visa restrictions designed for international shipments only.
- The illegal use of B-1 visa drivers, who are paid significantly less than their American counterparts, is driving down freight rates and threatening the livelihood of U.S. truckers.
- The American Trucking Associations (ATA) is pushing for stronger enforcement measures, including checks at weigh stations and collaboration with DHS and ICE to address visa abuse.
- Some U.S. carriers have established shell operations in Mexico to hire B-1 visa holders at lower wages for domestic hauls, while Mexican companies have created U.S. subsidiaries to facilitate illegal hiring practices.
- President Trump has reinstated federal English language proficiency mandates for commercial drivers to address safety and national security concerns.
Undermining American Trucking Through Visa Exploitation
The American trucking industry is facing an existential threat as companies exploit B-1 visa loopholes to hire Mexican drivers for domestic freight routes. These drivers, legally permitted only to transport international cargo from Mexico to U.S. destinations, are increasingly being deployed for purely domestic deliveries—a clear violation of cabotage rules designed to protect American jobs. This practice has created a two-tiered labor market where American drivers cannot compete with the substantially lower wages accepted by foreign drivers operating illegally within our borders.
“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.
The consequences for American truckers have been devastating. Many owner-operators and small trucking businesses are shutting down, unable to survive in a market where rates have been artificially depressed by illegal competition. One former owner-operator, identified only as Reed, explained his decision to close his business: “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.”
Industry Response and Enforcement Challenges
The American Trucking Associations has recognized the severity of the problem and is actively pushing for stronger enforcement of existing regulations. ATA chief economist Bob Costello has been unequivocal about the illegality of these practices, stating, “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.” The organization has urged the Department of Transportation to address this issue through more rigorous monitoring and enforcement actions.
“FMCSA’s safety monitoring and enforcement must be bolstered to eliminate fraudulent CDL training providers,” emphasized Chris Spear, President and CEO of the American Trucking Associations.
The American Transportation Research Institute (ATRI) has made cabotage violations one of its top five research priorities for 2025, recognizing the economic impact and threat to U.S. trucking jobs. Proposed enforcement measures include checking B-1 visa drivers at weigh stations and implementing closer collaboration between the Department of Transportation, Department of Homeland Security, and Immigration and Customs Enforcement to address the misuse of business visas in the trucking sector.
Presidential Action and Industry Priorities
President Trump has taken decisive action by reinstating federal English language proficiency mandates for commercial drivers, addressing both safety concerns and the need to maintain American job protections. This executive order, characterized as “Enforcing Commonsense Rules of the Road for America’s Truck Drivers,” represents a significant step in rectifying the previous administration’s lax enforcement policies that enabled this crisis to develop.
“Enforcing Commonsense Rules of the Road for America’s Truck Drivers,” declared President Donald Trump in his executive order reinstating these critical protections.
Beyond the cabotage issue, ATRI’s 2025 research agenda addresses several other critical challenges facing the trucking industry, including rising insurance costs, entry-level driver training effectiveness, safety impacts of in-cab monitoring systems, and optimizing telematics for fleet performance. These priorities reflect the industry’s determination to address both immediate threats like illegal cabotage and longer-term structural challenges to ensure the sustainability of American trucking operations.
Creative Exploitation of Legal Loopholes
The scale of this problem has been amplified by creative approaches to circumventing existing regulations. Some U.S. carriers have established shell operations in Mexico to hire B-1 visa holders at significantly lower wages than required for American drivers. Similarly, certain Mexican companies have created subsidiaries in the United States specifically to facilitate the illegal hiring of Mexican drivers for domestic routes. These arrangements allow companies to maintain a veneer of legality while deliberately undermining the intent of cabotage regulations.
The economic impact extends beyond just wage suppression. Safety concerns have emerged as well, with recent incidents involving foreign drivers including a fatal accident in Kentucky and property damage in Ohio. The reduced investment in proper training and safety protocols, combined with potential language barriers, creates additional risks on American highways that extend beyond the economic damage to the trucking sector itself.
