Part 1: Auto measures could hit market hard
Part 2: Big Ships Keep Ro/Ro Rolling
Auto measures could hit market hard
On June 8, President Donald Trump suspended the tariffs he had threatened on all imports from Mexico, a move that could have wreaked havoc on Mexico’s manufacturing sector and the North American auto business generally. The automotive sector in Mexico relies heavily on vehicle exports to the United States, accounting for more than 17% of all of Mexico’s manufacturing, while the United States auto industry relies on an integrated North American supply chain for its profitability.
The auto industry may have dodged a bullet with Trump’s reversal but the tariff situation is far from over. Duties on Chinese and most steel and aluminum imports are still in effect, and there is the possibility of more to come—particularly on vehicles. Although a decision has been postponed, the Department of Commerce is still considering imposing tariffs on vehicle imports on national security grounds—a development which would have an impact, not only on Mexico, but on trade with Europe and Japan, as well as the ro/ro business conducted by carriers and ports. A growing number of Mexican auto exports have been arriving at U.S. ports by way of short-sea maritime services, but the impact of car tariffs on the ro/ro business would undoubtedly be felt more on the trades from overseas.
