Point To Point

The automotive industry relies on seamless logistics to keep production lines running smoothly. For one major automotive manufacturer, managing freight from over 30 vendors in Mexico to a production facility in Alabama presented significant challenges.

In recent weeks, Mexico has implemented significant tariff and duty adjustments, catching many businesses off guard and triggering a wave of supply chain recalibration. The new measures include a 35% tariff on imported textiles and a 19% duty on goods shipped via courier services. According to Reuters, these changes aim to curb practices that exploit Mexico's trade advantages, particularly targeting e-commerce giants like Shein and Temu.

The implementation of the United States-Mexico-Canada Agreement (USMCA) in 2020 significantly reshaped economic relationships across North America. This modernized trade agreement replaced the North American Free Trade Agreement (NAFTA) and aimed to facilitate cross-border trade and investment among the three countries.

Over the past four years, the North American supply chain has begun a transformation driven by numerous large-scale events. Whether it's revaluating the viability of overseas manufacturing hubs in once-trade-friendly territories or circumventing the Suez Canal, supply chain managers are constantly on red alert these days.