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New Tariffs Give Mexico an Edge, Raise Shrimpers' Hopes; Panama Ports Deal Dealt Fresh Blow By Mark R. Long

After getting thrown on the defensive by President Trump's first round of tariffs and trade threats, Mexico now suddenly finds itself with an edge over Asian manufacturing rivals.

The WSJ's Anthony Harrup and Santiago Pérez write that the U.S.'s southern neighbor has been spared the steep new tariffs taking effect today on countries including China and Vietnam . Despite a 25% levy on autos among other duties, most of Mexico's trade with America remains tariff-free under the U.S.-Mexico-Canada Agreement. That trade deal signed by Trump in 2018 led to Mexico becoming the top foreign supplier of goods to the U.S.

Mexico's share of total U.S. goods imports rose to 15.5% in 2024 from 13.6% in 2018, while China's share fell to 13.4% from 21.2%, according to U.S. government data. Vietnam's U.S. import-market share more than doubled to 4.2% over that time. The hefty, widespread tariffs on competing nations could drive even more companies in the process of nearshoring their operations to move manufacturing to Mexico. Its relatively low labor costs, skilled workforce, cultural affinity to the U.S. and proximity to its northern neighbor add to the nation's allure as a manufacturing hub.

The Chamber of Commerce and other top industry groups are discussing whether to file a lawsuit over Trump's tariffs. (WSJ) Canada said its 25% tariff on U.S.-made vehicles that aren't compliant with the North American trade deal would take effect Wednesday . (WSJ) The European Commission is working on a plan to be ready as early as next week to counter auto export levies and a 20% tariff on goods from the bloc. (WSJ) China's biggest automaker, BYD, forecast strong first-quarter earnings in rare early guidance, a move to bolster confidence in China's hard-hit stock markets. (WSJ) The Chinese government is discouraging Shein from shifting some production overseas, according to people familiar with the matter. (Bloomberg) U.S. clothing and accessories retailers are delaying orders and freezing hiring ahead of tariff hikes. (Reuters) CONTENT FROM: PENSKE Gain a Leg Up. Gain Ground with Penske.

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Down on the Bayou

Shrimpers have high hopes that Trump's tariffs on imported shrimp will help them compete better with exporting countries such as Vietnam, India, Ecuador and Indonesia. The WSJ's Rachel Wolfe writes that more than 90% of the millions of pounds of shrimp eaten each year in the U.S. is imported . The economies of small towns like Bayou La Batre, Ala., have cratered amid a deluge of cheap, farmed seafood. Tariffs will likely raise the cost of imported shrimp, potentially raising demand for the domestic catch.

Quotable Logistics Real Estate

Trump's tariff blitz is threatening to weaken demand for warehouses and distribution centers that investors poured billions of dollars into near major U.S. ports.

The Journal's Peter Grant writes that a disruption in global trade could bring lower occupancy rates, reduced property values and less industrial development by port areas. Los Angeles, Houston, Savannah, Ga., New Jersey and other coastal regions could be among the hardest hit. Local economies would be hit, too. The industrial real-estate business has been a Wall Street favorite thanks to booming overseas trade and e-commerce. Not all logistics-property investments will lose if trade policies encourage a manufacturing renaissance, which would prompt developers to build more inland hubs.

Ports & Politics

Panama's top auditor dealt another blow to plans by a BlackRock-led group to buy two key Panama Canal ports from Hong Kong's CK Hutchison.

Anel Flores, Panama's comptroller general, said CK Hutchison unit Panama Ports owes $300 million in unpaid fees and failed to get needed clearances when it extended its 25-year contract with the Panama Maritime Authority in 2021. The WSJ's Costas Paris writes that Flores was presenting the findings of an audit that began after the nearly $23 billion deal for the two ports, along with some 40 other ports around the world, was announced.

Trump touted the deal in a speech to Congress, while Beijing has signaled its displeasure with it . Chinese antitrust officials said they would review the transaction and an initial April 2 deadline for signing definitive agreements passed with no announcements. A senior Panama official said the legal process could take between six months and a year and could potentially scuttle the deal.

China's Cosco Shipping Holdings said it expects a 72% jump in first-quarter profit on market growth and high rates. (Journal of Commerce) Number of the Day In Other News

China loosened its grip on the yuan by weakening its daily reference rate past a key threshold. (WSJ)

Deutsche Post's DHL will invest $2.19 billion over the next five years to boost its life sciences and health-care logistics capabilities. (Dow Jones Newswires)

German auto-parts maker Continental is exploring a separation of ContiTech, with a sale of the unit which makes hoses, conveyor belts and other products the most likely option. (WSJ)

Greece's Capital Maritime is lining up containership newbuildings worth nearly $1.6 billion in South Korea. (Splash 247)

Transits of Red Sea chokepoints rose to their highest level in six months, despite the resumption of war in Gaza and U.S. strikes on Yemen's Houthi rebels. (Lloyd's List)

The Trump administration pulled out of International Maritime Organization talks to decarbonize shipping and threatened to retaliate against any fees levied on U.S. vessels. (TradeWinds)

Australia's Woodside Energy is selling a 40% stake in its Louisiana liquefied natural gas project to U.S. investment firm Stonepeak. (The Maritime Executive)

Aurora Innovation is deploying its first self-driving tractor-trailer without an operator in Texas this month. (Austin American-Statesman)

Knight-Swift Transportation will add dashboard cameras to 15,500 trucks. (Trucking Dive)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

April 09, 2025 07:03 ET (11:03 GMT)

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