As the specter of new tariffs on Mexican imports looms large, shipping companies that have spent much of the past five years nearshoring – diversifying manufacturing bases to create more resilient supply chains – are holding their breath in uncertainty.
The uncertainty stems from a November post on Truth Social, where President Trump announced that, upon taking office, he would impose a 25% tariff on all imports from Mexico and Canada unless those two countries take action to stop people and illicit cargo from entering the United States. Many shippers fear that these tariffs, and the possibility that they could rise to 50%, 75%, or even 100% if the original tariff does not work, could cause irreparable harm to their businesses.
“Many shippers are grappling with understanding what effect these tariffs will have on their businesses and then trying to develop a strategy on how to respond,” said Anthony Fullbrook, president of OEC Group’s North American Division. “Businesses are struggling to find ways to keep costs down, and getting a handle on the continuously changing tariff landscape is making it more difficult for shippers to find a viable long-term solution.”
Part of what is making the landscape difficult to navigate is that Mexico and Canada do not have any intention of taking tariffs on their goods lightly. According to multiple media reports, the Mexican government is considering retaliating with its own tariffs on U.S. imports. Canada is also, according to MSN, considering levying retaliatory tariffs on American steel products, ceramics including toilets and sinks, glassware, flowers, orange juice, and plastics.
“When it comes to tariffs, there is only so much that shippers can control,” said Matt Haffner, OEC Group’s Regional VP of Customs Brokerage. “The best way to deal with these forces that are out of your control is to hire a customs brokerage advisor who is trained to spot opportunities that no one else sees. This can quickly change any negative outlook into positive returns and peace of mind.”
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