Borderlands Mexico: US apparel importers scrambling after Mexico imposes tariffs

Reno, Nevada-based ITS Logistics is 3PL providing end-to-end supply chain management and logistics services to businesses nationwide. It has 1.8 million square feet of distribution and fulfillment space in Texas, Nevada and Indiana.

The tariffs increased by 15% for textiles and up to 35% for finished apparel products entering Mexico. Along with being protective measures, the increased duties target cheaper imports from China, Mexican authorities said.

E-commerce brands have been using the de minimis provision of Section 321, which allows importers to avoid customs duties on shipments valued at $800 or less by importing goods from China into Mexico before shipping them to the United States.

“These are measures to protect one of the most important industries in terms of employment in our country, which is almost half a million people,” Marcelo Ebrard, Mexico’s economy secretary, said in a news release. “If these measures are not taken to avoid abuse or prices that are dumped or that may be dumped, or that are too low, then our national industry is at a disadvantage.”

President-elect Donald Trump said that on his first day back in office on Jan. 20, he will impose 25% tariffs on imports from Mexico and Canada.

The tariffs are aimed at pressuring those countries to stop drugs and illegal migrants from crossing into the U.S., Trump said. He has also said he’ll impose an additional 10% tariff on Chinese imports to fight drugs coming from that country.

Martin said companies looking to shift their supply chains need to first consider where they are sourcing goods from.

“It goes all the way back to your sourcing strategy. Where are you sourcing it from? You don’t want to just spin up new manufacturers, because you don’t know the capability and all the pieces that go into that ocean capacity, if it’s going to be ocean,” Martin said. “So it’s a substantial undertaking, especially if you’re a decent-sized shipper. If you’re a smaller shipper, you could probably pivot pretty simply, pretty quickly.”

For larger shippers that manufacture and transport millions of units that need to be imported into the U.S., the key is understanding where the customer base is located, Martin said. 

“If this is more or less a set-up for an e-commerce fulfillment, you really have to understand where your customer base is, and you have to understand how many nodes do I need? Do I just want to be centralized? What are my parcel costs going to look like – all those types of things, because the parcel markets are also a little bit in flux and chaos,” Martin said.

As a potential tariff war could impact shippers in 2025, he said the key for companies is looking for cost-effective strategies to transport their goods.

“You have to understand your SKU [stock keeping unit] base. You have to understand your parcel rates. You have to understand where your customers are, and the type of order profile you have,” Martin said. You have that good understanding upfront before you ask, ‘Am I going to take this in-house?’ If you have never done in-house fulfillment, then I would definitely go outside and outsource to a 3PL and don’t just play the rates.”

He said sometimes the lowest rate might not give companies the results they are looking for.

“That’s what a lot of people do. They just look at rates and they make a decision based on rate. You have to make a decision based on the provider, the culture of the provider, how they’re going to take care of you, because in the end, if you go to the wrong provider, they could destroy your business,” Martin said.

Source Logistics opens warehouse in Laredo

Source Logistics has opened a 425,000-square-foot logistics warehouse in Laredo, Texas, aimed at servicing cross-border freight.

With the addition of the Laredo facility, Source Logistics has 14 logistics warehouses across the U.S., totaling more than 3.2 million square feet.

“The launch of our new Laredo facility represents a significant milestone in our efforts to strengthen supply chain solutions for our customers,” CEO Raul Villarreal said in a news release.

The company services industries such as food and beverage, consumer packaged goods, retail, medical supplies, manufacturing, and technology.

Source Logistics is headquartered in The Woodlands, Texas. The company offers logistics and supply chain solutions across the U.S.

Brokerage giant opens office in Fort Worth

Freight brokerage firm TQL has expanded its presence in Texas with an office in Fort Worth.  

The 8,754-square-foot office is the company’s fifth in the Lone Star State. Others are in Austin, Houston, Dallas and San Antonio.  

“This newest office joins a strong group of TQL offices in Texas,” President Kerry Byrne said in a news release.

Cincinnati-based TQL is one of the largest freight brokerage firms in the nation. It connects shippers to its network of 140,000 transportation providers across the country.

Industrial manufacturer plans Fort Worth distribution hub

Industrial components manufacturer Endries International Inc. plans to open a new distribution hub in Fort Worth, Texas, according to a news release.

The Fort Worth facility will include 65,000 square feet of space near intermodal yards and aims to utilize ports along the West Coast and markets in Latin America.

“Our investment in this new distribution center is driven by our growing business in the region,”  Michael Knight, president and CEO of Endries International, said in a statement. 

The facility is scheduled to open by March.

Brillion, Wisconsin-based Endries International produces industrial fasteners and Class-C components for various industries. The company operates 26 distribution centers across North America and Europe.