**Mexico City**: Industry leaders are stressing the critical need for effective supply chain mapping to navigate impending tariffs by the Trump administration. Insights were shared during a webinar featuring experts discussing the potential impacts on cross-border trade between the United States and Mexico.
In recent developments within the cross-border trucking and trade sector between the United States and Mexico, key industry figures are emphasising the importance of effective supply chain mapping as a strategy to mitigate the potential impact of impending tariffs set to be imposed by the Trump administration on imports from Mexico and Canada. The tariffs, which are scheduled to begin on a Tuesday, have raised concerns among trade experts regarding their effect on material costs and shipping processes.
Speaking during a recent webinar titled “International Trade and Manufacturing in Mexico Under the New Trump Administration: What to Expect and How to Prepare,” Alejandro Gomez-Strozzi, an international trade attorney based in Mexico City with Foley & Lardner, detailed the need for companies to engage in thorough mapping of their supply chains. Gomez-Strozzi, who has served as a negotiator for the United States-Mexico-Canada Agreement (USMCA) and as a former undersecretary of economy in Mexico, stated that an orderly effort is necessary to understand the origins of supplies and materials. He voiced the opinion that effective supply chain mapping is crucial to adapt swiftly should the tariffs take effect, highlighting the complexities involved in unexpected tariff situations.
Gomez-Strozzi expressed skepticism regarding the likelihood of the tariffs being enacted, suggesting that the justification for increasing tariffs under the premise of national security would be difficult to substantiate. This comment comes in the wake of an agreement made on February 3, when Mexican and U.S. officials opted to suspend the proposed tariffs for one month contingent upon Mexico deploying 10,000 National Guard troops to the border to combat drug trafficking. “I very much doubt… that every single product exported out of Mexico is causing or merits to be included in the exception for national security,” Gomez-Strozzi remarked during the session.
In addition, Fernando Camarena, also associated with Foley & Lardner, noted that the administration of Mexican President Claudia Sheinbaum has introduced an initiative known as Plan Mexico to bolster the nation’s industries and attract more foreign investment. Launched on January 13, the plan outlines a series of tax incentives and strategies designed to enhance infrastructure, energy, urban mobility, and housing. Camarena suggested that the primary aim of Plan Mexico is to transform Mexico into one of the top ten global economies by increasing foreign investments and local manufacturing.
Presently, the total foreign investment landscape in Mexico remains critical, with officials continuing to promote nearshoring — the relocation of production closer to the U.S. market — as a primary focus of the initiative. Notably, a decree published in January has already begun offering tax breaks to companies participating in nearshoring efforts, signalling a proactive stance from the Mexican government.
In parallel developments, Menlo Equities and Axis Partners have begun construction on a significant logistics and distribution facility, the Vidal Cantu Industrial Center, in Laredo, Texas. This new centre will span 215,000 square feet and is expected to feature various logistical amenities to support regional trade. The completion of this facility is anticipated by the end of the current year.
Furthermore, WWEX Group, a major third-party logistics company based in Dallas, has established a new office in Monterrey, Mexico, a move aimed at enhancing its operational capabilities and strengthening its foothold in the region. COO Joel Clum expressed that this expansion reflects the company’s commitment to growth and increased opportunities within the Mexican market.
In another notable development, German automotive supplier Continental AG is planning to expand its presence in San Luis Potosí, Mexico, with the addition of a 25,800-square-foot facility. This expansion is expected to enhance production capabilities and operational efficiency within the company’s existing three plants in the region, which collectively employ nearly 4,000 individuals and cater to the North American market.
Source: Noah Wire Services
Subscribe to Industry Updates
