Borderlands Mexico: US apparel importers scrambling after Mexico imposes tariffs

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: US apparel importers scrambling after Mexico imposes tariffs; Source Logistics opens warehouse in Laredo; brokerage giant opens office in Fort Worth; and industrial manufacturer plans Fort Worth distribution hub.

US apparel importers scrambling after Mexico imposes tariffs 

Many U.S. retailers are having to rethink their sourcing and fulfillment strategies after the Mexican government announced increased tariffs on textiles and finished apparel products.

The tariffs, announced Dec. 19, are protective measures for the Mexican textile industry, designed to reduce the impact of low-cost apparel imports from China, Mexican authorities said.

“No one knows what to do. That’s the key piece. Everyone is exploring options right now,” Ryan Martin, president of distribution and fulfillment at ITS Logistics, told FreightWaves in an interview. “I spoke with one of our major real estate brokers, and he’s saying that their leads inquiries went up an exponential percentage. Everyone is inquiring right now; they’re gathering all their information.”

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 …

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