Navigating Uncertainty: Tariffs, Trade, and the Future of USMCA | |
The cross-border economy thrives on predictability, investment confidence, and trade policies that foster growth on both sides of the border. However, with renewed discussions on tariffs under the current administration, uncertainty is once again creeping into the economic landscape. These policies often portrayed as penalties on foreign exporters are, in reality, costs borne by American businesses and consumers.
As we look ahead to the 2026 USMCA revision, it’s crucial to assess the real-world implications of these tariffs and their impact on North America’s deeply integrated trade system.
The following key points highlight the real-world consequences of renewed tariff discussions and the challenges they pose to our region’s economic stability:
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Rising Costs for Essential Goods and Housing – Tariffs on imported materials drive up prices for food, fuel, cars, housing, and household items, adding to inflation and making everyday necessities even less affordable for families and businesses.
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Retaliatory Tariffs and Export Barriers – Trading partners often respond to U.S. tariffs with their own, making it harder for American exporters—especially farmers and manufacturers—to sell their products abroad.
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Nearshoring at Risk – The push to relocate supply chains closer to North America could stall if tariff uncertainty undermines confidence in regional trade stability, making other global markets more attractive for investment.
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Policy Shifts Are Undermining Trust – Frequent changes in trade policies create confusion among global partners, weakening North America's position as a competitive and reliable economic region. A clear, consistent approach to trade strengthens supply chains and reinforces our alliances.
| Strengthening Cross-Border Collaboration with the City of Tijuana | Hank Morton, SBC Board Member and President of BajaBound Insurance, Pedro Montejo Peterson, Secretary of Economic Development - City of Tijuana, Joaquin Luken, Executive Director SBC, Raul Azviaury, SBC and Oscar Higuera, Secretary of Economic Develpment | |
The Smart Border Coalition had a valuable discussion with Pedro Montejo Peterson, Secretary of Economic Development for the City of Tijuana, on the importance of strengthening binational collaboration to drive economic growth and improve border efficiency.
As the Tijuana-San Diego region continues to grow as a global hub for trade, investment, and innovation, fostering seamless cross-border mobility is essential. We explored key opportunities to enhance economic development and ensure that businesses and communities on both sides benefit from a more integrated and efficient border.
From infrastructure improvements to policy coordination, the Smart Border Coalition remains committed to working hand in hand with stakeholders on both sides of the border to advance solutions that support regional prosperity, reduce wait times, and enhance the border experience for travelers and businesses alike.
We’re excited to continue building strong partnerships and driving meaningful progress toward a more competitive and dynamic CaliBaja region!
| SBC Engages with future binational leaders at CETYS Universidad | Smart Border Coalition was invited to guest speak at CETYS Universidad’s Transcultural Behavior class, where he discussed the dynamic cross-border relationship between San Diego and Tijuana. The conversation focused on the economic, social, and cultural impact of the border, as well as the evolving challenges and opportunities shaping our binational region. | Portside Academy: Connecting Policy, Industry, and Community | |
The Smart Border Coalition is proud to join the Port of San Diego’s Portside Academy, a program that strengthens connections between the Port, local communities, and key stakeholders. This initiative provides insights into port operations, economic development, and sustainability, empowering participants to drive positive change in our cross-border region.
Through Portside Academy, SBC reinforces its commitment to collaboration, economic growth, and environmental progress. The Port of San Diego is vital to trade, tourism, and community well-being, and this program bridges policy, industry, and the public.
We encourage you to learn more about the Portside Academy program to gain a deeper understanding of the Port’s impact on regional trade, sustainability, and economic growth.
| Smart Border Coalition Explores UC San Diego Community Stations | |
The Smart Border Coalition was honored to tour the UC San Diego Community Stations, a network of hubs tackling social and environmental challenges in underserved neighborhoods on both sides of the San Diego–Tijuana border.
A key takeaway was how these stations can combat debris and pollution in the Tijuana River Valley, a long-standing issue affecting our environment and cross-border communities. Through education, research, and engagement, they model sustainable regional development.
This visit included the Casa Community Station in San Ysidro and Alacrán Canyon Station in Tijuana, where guests explored collaborative solutions to pressing regional issues.
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This graph tells a compelling story of how border crossings in the CaliBaja region have evolved over the last two decades. It’s remarkable to see that the number of border crossings was higher in 2000 than today, a reflection of how modern history has reshaped the movement of people and goods across the border.
Several key events have played a role in this transformation:
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9/11 and the Creation of Homeland Security – The terrorist attacks of September 11, 2001 led to the establishment of the Department of Homeland Security (DHS) and a major shift in border security policies.
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The Western Hemisphere Travel Initiative (WHTI) – The implementation of WHTI required U.S. citizens to present passports or other approved documents when re-entering the U.S., changing the profile of traditional border crossers and influencing travel behavior.
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Increased Security Measures – Over time, heightened security and inspection processes have slowed crossings, making efficiency a critical issue for commuters, businesses, and cross-border trade.
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The Role of Expedited Travel Programs – In response to growing security concerns, programs like SENTRI, FAST, Ready Lane, and Global Entry were introduced to balance security with efficiency. These programs have significantly improved the flow of trusted travelers and cargo.
While modern security policies have reshaped the cross-border dynamic, infrastructure improvements—such as the $742 million modernization of the San Ysidro Port of Entry and the introduction of Cross Border Xpress (CBX)—have helped facilitate more seamless travel.
The challenge remains to enhance security while ensuring efficiency, especially given the economic and social interdependence of the San Diego-Tijuana region.
This graph is a reminder that border policy directly influences mobility, trade, and regional prosperity—making it critical for stakeholders to advocate for smart, technology-driven solutions that keep our border both secure and efficient.
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