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Tariff Rehearsal at the Border; Chipotle Spreads Wider Net for Avocados By Mark R. Long

Businesses that depend on cross-border trade got a preview last month of the effects of new tariffs at the bustling crossing of Ciudad Juárez, Mexico.

The WSJ's Kejal Vyas writes how the number of freight-truck crossings plummeted and confusion reigned among customs agents, industrial park executives and drivers when all goods entering the U.S. from Mexico were subject to 25% tariffs. On March 4, crossings dropped 7% from an average of 3,700 a day. They fell 9% the next day and 14% the day after. About 180,000 trucks were stranded along the entire border in freight yards, railway terminals and other facilities, their drivers waiting for word.

On March 6, President Trump temporarily lifted tariffs on most but not all goods from Mexico and Canada, kicking companies in Ciudad Juárez back into gear, hoping to send as much stuff as possible across before the duties returned. The disruption shows how businesses are struggling to adapt to new trade barriers and policy uncertainty, with Trump set Wednesday to reveal just what kind of tariffs will be imposed.

U.S. manufacturing activity fell back into contraction in March, reflecting renewed concerns about tariff-related cost pressures and demand. (WSJ) The risk of pending price hikes following new tariffs helped boost March U.S. vehicle sales . (WSJ) The European Union is prepared to retaliate against planned tariffs if it can't reach a deal with the U.S. (WSJ) China is seeking to coordinate its response to U.S. tariffs with Japan and South Korea. (WSJ) A gauge of manufacturing activity signaled first-quarter slowdowns in some of Asia's top exporting economies. (WSJ) The U.S. listed Quebec's French-language law as a non-tariff trade barrier. (WSJ) Mercedes-Benz is considering pulling its cheapest cars from the U.S. because of new tariffs. (Bloomberg) CONTENT FROM: PENSKE Gain AI. Gain Ground with Penske.

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Quotable Food Imports

For seven years, Chipotle Mexican Grill has scoured the Americas and Caribbean for farms and suppliers to satisfy its immense demand for avocados for guacamole.

The burrito purveyor had depended on Mexico for 85% of its avocados, which the Journal's Heather Haddon writes left the chain at the mercy of that one country's weather and other factors-such as cross-border trade. Since food-industry supply chains can take years to build, many companies' executives are now figuring out whether to redraw trade lines to avoid new tariffs , absorb rising costs or pass them along to diners.

Initially Chipotle's growth ambitions and its customers' huge demand for guacamole drove it to seek new suppliers. The California company expanded its supply chain team and directed it to find new sources. Hurdles abounded, including specific sun and soil needs, and having to work with new suppliers in Colombia, Peru and the Dominican Republic to raise the fatty fruits the chain required. It now aims to develop new suppliers in El Salvador and Honduras.

Number of the Day In Other News

U.S. hiring and layoffs mostly held steady in February, the Labor Department said. (WSJ)

The Reserve Bank of Australia kept interest rates unchanged ahead of an election on May 3 and as it awaits confirmation inflation is in retreat. (WSJ)

U.K. shop prices continued to decline year over year in March, although at a slower pace. (WSJ)

A U.S. call for Europeans to spend 5% of GDP on defense is prompting talk of changing the rules for what counts as military spending. (WSJ)

The European Commission fined more than a dozen carmakers and a trade group $495.3 million in an antitrust probe over a vehicle-recycling cartel. (WSJ)

Macy's hired Thomas Edwards to be its new chief financial officer and chief operating officer from fashion conglomerate Capri Holdings. (WSJ)

Real-estate developer Joshua Simon is building 1.5 million square feet of retail space despite the high cost of construction and low returns. (WSJ)

Xiaomi's shares fell in Hong Kong after a fatal car accident involving one of its electric vehicles in China. (WSJ)

Mercedes-Benz's first-quarter sales fell slightly on the year, mainly due to weakness in China. (WSJ)

AP Moller-Maersk's main shareholder made a $1.3 billion bid for Danish tug boat operator Svitzer. (WSJ)

Dry bulk carrier Pioneer Navigation named Peter Bro as its new president. (Splash 247)

CMA CGM's planned takeover of Air Belgium's cargo operations moved forward after a court approved the deal , which includes four freighters. (Air Cargo News)

New environmental requirements on the sulfur content of marine fuel will be introduced in the Mediterranean in May. (ShippingWatch)

The U.K.'s Clarksons is expanding in the U.S. with its purchase of shipbroker Euro-America Shipping & Trade. (TradeWinds)

Port Houston handled 13% less cargo in February than a year earlier, with 14 days of operations affected by fog. (Supply Chain Brain)

Two new bills introduced in Congress are aimed at helping truck drivers with tax credits and lowering the cost of buying new trucks. (Logistics Management)

The U.S. Postal Service is implementing new service standards for some of its deliveries as it overhauls its volume collection processes. (Supply Chain Dive)

The National Carriers Conference Committee rail carriers group and the International Association of Machinists and Aerospace Workers reached a tentative national agreement. (Progressive Railroading)

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 02, 2025 07:06 ET (11:06 GMT)

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