Point To Point

Over the past few weeks, cross-border transportation has entered a new phase of scrutiny—one that’s already beginning to reshape capacity, disrupt operations, and force some tough conversations in the logistics world.

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.