Juergen Heinrich’s Post

As US-China #trade tensions escalate with impending #tariffs, businesses must diversify supply chains away from China to manage rising costs effectively. Explore how our integrated platform allows companies to quickly onboard new suppliers and optimize logistics, ensuring resilience against future regulatory changes and enhancing supply chain sustainability. Learn more at the link below! #MovingAsOne

In U.S. trade war with China, Mexico is emerging as the big winner Trade between China and Mexico has surged amidst ongoing U.S. tariff discussions, with Chinese companies increasingly shifting manufacturing to Mexico. This allows Chinese firms to import raw materials and components into Mexico, manufacture products there, and then export to the U.S. under the "Made in Mexico" label, taking advantage of the USMCA trade agreement. Nearshoring from China to Mexico is driven by economic and geopolitical factors, such as reduced tariffs and supply chain disruptions, making Mexico a key player in North American trade. Companies across sectors, including automobiles and technology, are capitalizing on this shift. Data shows a significant rise in container shipments from China to Mexico, with Mexico-U.S. trade growing rapidly. However, this shift has raised political tensions, with both U.S. presidential candidates proposing increased trade barriers. Meanwhile, logistics firms are expanding in Mexico to capture the growing demand for cross-border trade. #TradeSurge #ChinaMexicoTrade #Nearshoring #USMCA #SupplyChain #ManufacturingShift #Logistics #CrossBorderTrade #Tariffs #GlobalEconomy Stay informed: https://lnkd.in/gMEbuYhk

Will Vietnam and Mexico be the true winners from trade tension between the US and China? Read the analysis alongside the key stories in supply chain this week here: https://lnkd.in/e7VC7Ruh #supplychain #logistics #freight #shipping #ecommerce #trade #tariffs

Prepare for heightened supply chain complexities as new #USTariffs on Chinese imports loom. Leverage e2open's advanced tools to anticipate and navigate regulatory shifts, enabling seamless adaptation to market dynamics while fortifying partnerships with suppliers worldwide. Discover more at the link below! #MovingAsOne 

Global Manufacturing Shifts: How Small Businesses Are Navigating the New Landscape - Amid rising tariffs and trade uncertainties, U.S. small businesses are rethinking their reliance on China for manufacturing. Countries like Mexico, Vietnam, and Kenya are becoming attractive alternatives, but the shift is complex. High minimum orders, quality concerns, and tight profit margins challenge these transitions. Some businesses are taking bold steps to diversify supply chains and even bring production back to the U.S., despite higher costs. This could significantly reshape import patterns and manufacturing strategies. As global trade evolves, adaptability is key for businesses of all sizes. What strategies do you think will define the future of global manufacturing? I'm curious to hear everyone's thoughts. #GlobalTrade #SupplyChain #Manufacturing #Tariffs #BusinessStrategy #SmallBusiness #GlobalEconomy #TradePolicy #Logistics #Nearshoring #Reshoring #EconomicTrends #InternationalBusiness #TradeUncertainty Pat Huffine

More inbound U.S. volumes from China are arriving at the Mexican coast, translating to telling growth for cross-border trade and nearshoring business models. Check out today's blog for a closer look: . . . #supplychain #internationalshipping #crossbordertrade #mexico #nearshoring #import #china #manufacturing #logistics #logisticscompany #CommerceExpressInc

Mexico's rise as a key trade hub is reshaping US container availability, impacting supply chains and logistics. Companies are shifting production from China to Mexico, leveraging USMCA and avoiding US tariffs. This has led to: • 26.2% increase in China-Mexico container trade • Record US-Mexico border crossings • Laredo, Texas becoming a crucial logistics hub Resulting changes: 1. More cross-border trucking and rail demand 2. Increased border container facilities needed 3. Shift from direct China-US to China-Mexico-US routes For container traders this means: Container availability in US inland locations will continue to decrease, which will put upwards price pressure on the trading market. Worth sharing: https://lnkd.in/drP-kV4e by Lori Ann LaRocco at CNBC Container xChange

This development was already clear many years ago. Therefore, #PARETOinterim started as early as 2018 to support customers in #siteselection, #greenfield startups, #localsourcing and even building up strong purchasing organizations in Mexico. And it’s not just the tariffs that drive #nearshoring activities, it’s also the availability of qualified and motivated workforce. The article highlights the increasing trade between China and Mexico in response to U.S. tariffs on Chinese goods under both the Trump and Biden administrations. This shift, fueled by nearshoring, has seen even Chinese companies move production to Mexico to benefit from favorable trade agreements like the #USMCA, allowing products to be labeled “Made in Mexico” despite using Chinese components. This practice of “substantial transformation” enables companies to avoid U.S. tariffs on Chinese goods. As a result, Chinese imports into Mexico have surged, with Mexico becoming a backdoor for Chinese goods entering the U.S., especially through the automotive, textiles, and electronics sectors. Mexico’s free trade agreements and proximity to the U.S. make it a strategic manufacturing hub, boosting trade volumes. This growth has also been supported by European companies and the “China Plus One” strategy, which encourages diversification away from China. Cross-border trade between Mexico and the U.S., particularly by truck and rail, has seen record highs. Despite political tensions and campaign promises to impose stricter tariffs, companies continue to leverage Mexico’s economic advantages, making it a vital link in global supply chains.

Whatever the result in todays US election, we have been talking to all different sizes of companies, who are looking at alternative countries for manufacturing their products. But with China’s deep rooted value in the supply chain it’s not as easy as it seems and the term ‘country of origin’ is getting thrown about loosely. Check out our article on Country of Origin and whether your transfer of processes can actually change this! KINYU SCM John Cakebread Yuqing Xie Jay Ian Birbeck #china #diversification #supplychain https://lnkd.in/gBPfh2is

China has been in the news a lot lately, for a lot of different reasons. The US has recently levied tariffs on Chinese goods, specifically targeting Chinese automakers. With Biden dropping out and Harris replacing him on the Democratic ticket. With Trump running again, the questions surrounding the future of Chinese manufacturing and US imports from China are in question. What does this look like? What are companies doing to prepare for the future? The Chinese will move their manufacturing to Mexico and we will continue to be addicted to cheap Chinese goods for the foreseeable future, those good will be labeled “Hecho en Mexico”. The Chinese have overproduced and are dumping as much as they can of those materials on the rest of the world. We hold the leverage in the relationship as we import 4:1 what they import from us. $140 billion of what we import from them are small consumer goods. Think watches, phones, and Stanley cups. $110 billion more are refrigerators, ovens and TVs. Even those items are not always made in China, just by Chinese companies. China’s growing middle class has made labor more expensive there. For China to make as much as they used to they have moved their manufacturing to Vietnam and other Southeast Asian countries. Foxconn has closed a very large factory in China in favor of Vietnam. How has this happened? Purchasing contracts. The US has already started nearshoring because of the advantage we have gained for the disruptions to the supply chain in the last couple of years. It only makes sense for China to open more and more factories in Mexico to maintain the economic advantage. And it is the only way for China to sell goods in the US without the high tariff we placed on them. We are always seeking the lowest price and the most stable supplier. Increasingly that means for companies to get the best value they have to be close to home. For American companies that looks like Mexico. Eventually we could come to depend on the ocean freight that takes 8 weeks to get here, but for now the supply chain disruption is too fresh in our memories. This is where we are now. We opened relations with the Chinese in hopes that our trade with them would democratize them. We opened the border to Mexico for trade. And 30 years later we are now looking at a hybrid of that system that very few people could have predicted. We are a part of global economy. There are different views on whether that is good or bad, but it does require some critical thinking. How do we deal with it? What is the most effective strategy? I would be happy to spend some time with your company or with you talking about the different ways this can play out. The strategy is different for everyone. It would be an interesting conversation. #newyorktimes hashtag #logisticsexecutive hashtag #manufacturing hashtag #manufacturingexecutive hashtag #china hashtag #mexico hashtag #bti hashtag #NAFTA hashtag #TTP hashtag #policy