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TRADE ALERT- my latest deep dive into the Trump/ Biden tariffs. You know me this report is full of data - Xeneta VesselBot-Enabling Sustainable Supply Chains Moody's Motive and commentary by Peter Sand Constantine Komodromos Mary E. Lovely Christine McDaniel Evelyn Suarez Redwood Logistics Mexico Jordan Dewart DHL A.P. Moller - Maersk ITS Logistics Freightos Uber Freight China-Mexico 'backdoor' trade booms in Trump, Biden tariff erai #logistics #logisticsmanagement #mexico #usmca #tradewar #tariffs #maritimenews #businessnews

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

🇲🇽 The New Trade Landscape: China-Mexico Backdoor Booms Amid Tariffs In a world where trade dynamics are constantly shifting, the latest analysis reveals a significant surge in trade between China and Mexico. This “backdoor” trade has become a strategic maneuver for companies looking to sidestep the tariffs imposed during the Trump and Biden administrations. By leveraging Mexico’s manufacturing capabilities, Chinese firms are finding new ways to bring their products into the U.S. market, all while adhering to existing trade laws. The CNBC article highlights how Chinese companies are increasingly moving their production to Mexico to avoid hefty U.S. tariffs. This shift is not just a workaround but a strategic move that aligns with the principles of nearshoring and the USMCA trade agreement. The trend is driven by the need for more efficient logistics and the desire to mitigate risks associated with the Uyghur Forced Labor Prevention Act (UFLPA) and other trade uncertainties. At John S. James Co., we understand the complexities of international trade and the importance of staying ahead of industry trends. As U.S. Customs Brokers and Freight Forwarders, we offer comprehensive services to ensure your shipments move smoothly between the U.S. and Mexico. Our expertise in the USMCA trade agreement and our robust risk management solutions can help you navigate these challenging times. Learn more about our services at www.johnsjames.com. #Trade #Logistics #FreightForwarding #CustomsBrokerage #USMCA #Nearshoring #ChinaPlusOne #SupplyChain #RiskManagement #UFLPA #CNBC #Mexico #China

𝐆𝐥𝐨𝐛𝐚𝐥 𝐥𝐢𝐧𝐞𝐫𝐬 𝐟𝐥𝐨𝐜𝐤 𝐭𝐨 𝐌𝐞𝐱𝐢𝐜𝐨 South Korean flagship carrier HMM became the latest liner this week to announce a new service linking China with emerging manufacturing powerhouse Mexico. There have been a rash of similar China-Mexico loops announced in recent months changing the makeup of the transpacific container trades. Last week, Ocean Network Express (ONE) detailed a new similar shuttle service, while last month both COSCO and OOCL did similar with Mediterranean Shipping Co (MSC) also getting in on the act earlier in the year. Data from Container Trades Statistics show January to May volumes between China and Mexico set a new record ofd 563,829 teu, up 28% on the same period in 2023. Annual growth in container shipping between China and Mexico had already increased by 34.8% in 2023 compared to just 3.5% in 2022. Last year, Mexico overtook China as America’s top trade partner, according to data from the US Commerce Department. Emily Stausbøll, a senior shipping analyst at Xeneta, a freight rate platform, told Splash: “The China to Mexico trade has seen phenomenal growth in recent years, even during 2023 when ocean container shipping volumes were subdued at a level global.” Stausbøll attributed the record-breaking figures in 2024 down to the same factors behind the enormous growth in 2023 – such as importers using Mexico as a backdoor to the US to avoid tariffs on goods from China. She also cited other factors such as increased investment in manufacturing in Mexico. “In a purely hypothetical scenario, if this growth rate continues, by the year 2031 there will be more containers imported from China into Mexico than the US west coast,” Stausbøll’s colleague at Xeneta, Peter Sand, said earlier this year, noting the recent opening too of a cargo-only airport at Mexico City.

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

In U.S. trade war with China, Mexico is emerging as the big winner New data shows a significant surge in trade between China and Mexico, driven by Chinese companies nearshoring manufacturing operations to Mexico. By bringing raw materials from China and assembling products in Mexico, these companies take advantage of Mexico’s trade agreements, such as the USMCA, to reclassify goods as "Made in Mexico," bypassing U.S. tariffs on Chinese products. This nearshoring trend is especially prominent in sectors like automobiles and textiles, where components undergo "substantial transformation" in Mexico, allowing them to qualify for tariff exemptions when exported to the U.S. European and U.S. companies are also increasingly nearshoring to Mexico, capitalizing on its trade networks and proximity to the U.S. Trade between China and Mexico has surged, with container traffic up 26.2% in the first half of 2024. Mexico’s free trade agreements make it a key manufacturing hub for Chinese goods entering the U.S., avoiding high tariffs on Chinese imports. This shift has positioned Mexico as the top U.S. importer, surpassing China. Mexico’s role as a logistics hub has grown, with companies like Tesla, Hyundai, and BYD investing in the country. Cross-border trucking and rail transport from Mexico to the U.S. have increased, further solidifying its importance in U.S. supply chains. New infrastructure projects, like the Laredo rail bridge, are being built to accommodate rising trade volumes. As tariffs and trade barriers increase, experts predict Mexico’s importance as a trade route will continue growing through the end of the decade. Companies are front-loading goods through Mexico in anticipation of potential new tariffs under a future Trump administration, and Mexico's role in North American supply chains is expected to expand further. https://lnkd.in/giaE-y5q

Delighted to share our latest industry analysis on US-China trade dynamics in Container News ! Our data reveals fascinating trends: Chinese container imports to Mexico surged by 61.5% in early 2024, while Manzanillo and Lázaro Cárdenas ports saw unprecedented growth. This reflects a fundamental shift in global supply chains as businesses adapt to ongoing trade tensions. 👉 Read the full article on how Mexico is reshaping N. American logistics patterns and what this means for the industry: https://lnkd.in/dEFZknxn Thank you, Container News, for featuring our insights. #InternationalTrade #Logistics #SupplyChain #VesselBot #PrimaryData

In U.S. trade war with China, Mexico is emerging as the big winner New data shows a significant surge in trade between China and Mexico, driven by Chinese companies nearshoring manufacturing operations to Mexico. By bringing raw materials from China and assembling products in Mexico, these companies take advantage of Mexico’s trade agreements, such as the USMCA, to reclassify goods as "Made in Mexico," bypassing U.S. tariffs on Chinese products. This nearshoring trend is especially prominent in sectors like automobiles and textiles, where components undergo "substantial transformation" in Mexico, allowing them to qualify for tariff exemptions when exported to the U.S. European and U.S. companies are also increasingly nearshoring to Mexico, capitalizing on its trade networks and proximity to the U.S. Trade between China and Mexico has surged, with container traffic up 26.2% in the first half of 2024. Mexico’s free trade agreements make it a key manufacturing hub for Chinese goods entering the U.S., avoiding high tariffs on Chinese imports. This shift has positioned Mexico as the top U.S. importer, surpassing China. Mexico’s role as a logistics hub has grown, with companies like Tesla, Hyundai, and BYD investing in the country. Cross-border trucking and rail transport from Mexico to the U.S. have increased, further solidifying its importance in U.S. supply chains. New infrastructure projects, like the Laredo rail bridge, are being built to accommodate rising trade volumes. As tariffs and trade barriers increase, experts predict Mexico’s importance as a trade route will continue growing through the end of the decade. Companies are front-loading goods through Mexico in anticipation of potential new tariffs under a future Trump administration, and Mexico's role in North American supply chains is expected to expand further. https://lnkd.in/giaE-y5q

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.

China's container shipping volume to US jumps 15 percent in June China's seaborne container shipments to the US jumped 15 per cent year-on-year in June, showing resilient supply and demand between the world's two largest economies despite intensified decoupling by the US, reports Beijing's Global Times. Multiple factors contributed to the growth, industry experts said, including the early preparation and delivery of products for Christmas as well as a seasonal shopping spree that falls in late November. According to US-based research company Descartes Datamyne, the numbers of containers moved from Asia to the US in June increased by 16 per cent year-on-year, Nikkei reported. It was the 10th consecutive month of year-on-year growth. The Chinese mainland, which accounted for nearly 60 percent of the total volume, rose 15 percent, the Nikkei reported. All of the top 10 products exceeded the same period last year. The largest increase was in automotive-related products, which grew 25 per cent, followed by textile products, which rose 24 per cent, according to the report. The figures are in line with data released by China's General Administration of Customs on July 12. In June, China-US trade amounted to CNY420.94 billion (US$57.8 billion), a year-on-year increase of 2.9 per cent. China's exports to the US rose 4.7 per cent, maintaining a positive trend. Chinese experts said that the trend shows that China-US trade relations remain resilient and strong, despite the US government's attempts to decouple from China. Another reason for the rising cargo volume might be that businesses are speculating about possible heavier tariffs, depending on the US presidential election result, so they're ramping up goods production and delivery, Source: LFS Group Newsletter