U.S. trade shifts: Tariffs, auto supply & cross-border trends
U.S. policy updates
On March 4, the United States imposed 25% tariffs on Canadian and Mexican imports, as well as an additional 10% tariff on China imports (equaling a 20% increase overall). On March 5, a White House spokesperson said tariffs on vehicles that comply with the 2020 U.S.-Mexico-Canada agreement’s rules of origin would get a one-month exemption. As this report was published, no official executive order had been filed.
These evolving tariffs, labor shifts, and demand fluctuations leave many automakers’ inventory strategies in question. Long-term resilience and ability to stay competitive remain critical, even in an environment where cost reduction is top of mind. As trade negotiations continue, stay up to date on the latest developments with C.H. Robinson client advisories.
The United States Trade Representative (USTR) has proposed significant port fees on Chinese shipping companies and Chinese-built ships, up to $1.5 million per port call, and affecting 80% or more of ships calling at U.S. ports. This would increase shipping costs and disrupt the automotive industry, as China is among the world’s largest supplier of car parts. The USTR is accepting public comments through March 24, when it will hold a public hearing on this proposal.
Cross-border
In 2024, Mexico achieved a record trade surplus with the United States auto sector, 6% higher than in 2023. The U.S. continues to remain the primary destination for Mexican exports. The National Auto Parts Industry forecasts 3.35% growth in 2025. However, automotive production increased just 1.7% in January 2025 while exports dropped by 13.7% with uncertainty due to U.S. trade policies. As we wait for trade negotiations to continue, stay up to date on the latest developments, which can be found on our Client Advisories page.
Recent protests on the Mexico side of the World Trade Bridge resulted in congestion and delays of up to eight hours, impacting automotive cross-border shipments. Trucking capacity in Mexico remains favorable, providing flexibility for both cross-border and intra-Mexico shipments from key manufacturing regions—the Bajío, central Mexico, and the northeast.