Freight Technologies Invests $20M in TRUMP Meme Coins Amid Tariff Fears, Stock Drops 20%

Freight Technologies Inc., a cross-border transportation logistics company, has announced a significant investment of $20 million in TRUMP meme coins. The company plans to purchase these coins as part of a MicroStrategy-style treasury strategy. This move is primarily driven by concerns over impending US-Mexico tariffs, which could have a substantial impact on the company's operations.

The decision to invest in TRUMP meme coins has sparked controversy, given the potential for corruption and the significant portion of the President's net worth tied up in cryptocurrency. Freight Technologies' press release highlights the company's interest in AI and Web3 developments, but the primary focus is on the potential impact of Trump's tariffs on its bottom line.

CEO Javier Selgas emphasized the company's mission to promote productive and active commerce between the United States and Mexico, noting that Mexico is the United States' top goods trading partner. The investment in TRUMP tokens is seen as an effective way to advocate for fair, balanced, and free trade between the two countries. Freight Technologies is heavily involved in cross-border shipping with Mexico, and its AI experiments are aimed at optimizing this trade.

A trade war with Mexico could significantly damage the company's ability to continue functioning. However, President Trump has already approved several tariff carve-outs for specific companies. While Freight Technologies' statement did not explicitly appeal to Trump for such a carve-out, reports have alleged that several crypto companies received direct or indirect legal benefits from donating to his Inauguration. Some firms obtained these benefits after donations as low as $100,000, raising questions about whether a $20 million investment could attract the President's attention.

Freight Technologies' reasoning for this purchase revolves around trade relations between the US and Mexico. The company's press release briefly mentions that TRUMP is an "excellent way to diversify our crypto treasury," but this is the only non-tariff justification provided. If Freight attempts to petition the President, it may want the Mexico tariffs removed outright, as nothing suggests that it wants a carve-out while the tariffs remain.

This TRUMP purchase may have implications for Freight Technologies' stock price. The company first published this press release on April 30, but it began circulating through crypto-centric social media on the afternoon of May 1. As the news spread, Freight Technologies' stock fell by over 20%. Moving forward, it will be important to monitor this story, as companies have begun creating MicroStrategy-style plans for assets like Solana. While Freight Technologies is the first to do it with TRUMP, it may not be the last.