Let’s first take a look at the TARIFFS Update….
New U.S. Import Duties: Higher Costs, Tighter Trade
On February 1, 2025, President Trump announced new tariffs on imports from Canada, Mexico, and China to combat illicit drug trafficking. The order also suspends the duty-free exemption for shipments under $800, a known smuggling loophole. With 25% tariffs on Canadian and Mexican goods and 10% on Chinese imports, the policy could disrupt e-commerce and cross-border supply chains. (Source: The White House)
U.S. Tightens Control on Trade Partners with Fresh Tariffs
Canadian energy resources are subject to a reduced 10% tariff. These measures aim to hold these nations accountable for commitments to curb illegal immigration and drug trafficking, particularly the flow of fentanyl into the U.S. The administration emphasizes leveraging America's economic position to enhance border security and public health. (Source: The White House)
Mexico Gets a Tariff Reprieve—For Now
On February 3, 2025, Mexican President Claudia Sheinbaum announced that the U.S. has agreed to pause the 25% tariffs on Mexican imports for one month. This decision follows a conversation with President Donald Trump, during which Mexico committed to deploying 10,000 National Guard troops to its northern border to combat drug trafficking, particularly fentanyl. Both nations will engage in negotiations focusing on security and trade, aiming for a more comprehensive agreement. (Source: CNBC)
Tariffs Paused for Mexico and Canada, But China Still in Focus
On February 3, 2025, President Donald Trump announced a 30-day suspension of the planned 25% tariffs on imports from Mexico and Canada after agreements with both nations to enhance border security and combat drug trafficking. Mexico will deploy 10,000 National Guard troops to its northern border, while Canada will implement advanced border technology and intensify efforts against organized crime. Despite this pause, a 10% tariff on Chinese imports remains in place, with the administration citing concerns over China's role in fentanyl trafficking. Analysts warn that continued tariffs may lead to higher prices for various goods, including food and everyday products. (Source: AJOT)
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Tour de Supply Chain Headlines:
New Ocean Alliances Send Rates Tumbling
Since December 2024, average spot rates on major trade lanes have steadily declined. The launch of new shipping alliances and MSC's standalone network has contributed to this downward trend, with no immediate signs of stabilization. Industry analysts suggest that the evolving carrier landscape is intensifying competition, leading to rate reductions. (Source: JOC)
Oakland’s Big Year: TEU Volumes Hit New High
In 2024, the Port of Oakland handled 2.26 million twenty-foot equivalent units (TEUs), marking a 9.5% increase from the previous year. This growth underscores the port's expanding role in global trade and its significance in the supply chain. (Source: Container News)
U.S. Closes E-Commerce Tax Loophole
President Trump's recent executive orders impose tariffs of 25% on imports from Canada and Mexico, and 10% on Chinese goods, effective February 4, 2025. Notably, these orders eliminate the "de minimis" exemption, which previously allowed packages valued under $800 to enter the U.S. duty-free. This change directly impacts e-commerce platforms like Temu and Shein, which have utilized this exemption to ship low-cost goods directly to American consumers. The removal of this loophole aims to level the playing field for domestic retailers and address concerns over unmonitored imports. (Source: SupplyChain Brain)
Sweetheart Shock: Valentine’s Cocoa Costs Climb
As of mid-January 2025, cocoa prices remain above $11,300, slightly lower but still high after significant volatility in 2024. Supply disruptions and adverse weather conditions in key producing regions have fueled market instability. Analysts caution that while prices have recently steadied, supply concerns persist, keeping the market on edge. (Source: Business Times)
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3 Supply Chain Events You Can’t Afford to Miss in Q1
🚀 MANIFEST 2025: Feb 10-12 | Las Vegas, NV
The go-to event for end-to-end supply chain innovation, covering automation, AI, and logistics tech.
🔹 Session to Watch: Shippers Roundtable – "Container Supply Chain Risk Mitigation - Freight Audits & Cost Control Amid Rising Regulations and Disruptions"📅 When? Tuesday, Feb 11 | 12:30 PM
📍 Find BlueCargo: Booth #220 (Between the Puppy Park & The Spa)
🎯 Secure Your 10-min Meeting – Book Here
🛍️ RILA LINK25: Feb 16-19 | Orlando, FL
Retail supply chain professionals, this one’s for you! Covering logistics, sourcing, and compliance, RILA is where retailers align for the year ahead.
📍 Find BlueCargo: Kiosk RIC-6 (Near the Lounge Stage & Lunch Tables)
🎯 Meet with Grant or Monty – Schedule your meeting now! Book Here
⚓ TPM 2025 – The Super Bowl of Supply Chain: Mar 2-5 | Long Beach, CA
The most critical event before contract season, shaping global ocean freight strategies.
🔹 Session to Watch: "The New Tech Revolution: Where AI Is Yielding Practical Logistics and Compliance Solutions"📅 When? Tuesday, Mar 4 | 3:05 - 3:45 PM
💡 Why Attend? This session cuts through AI hype, revealing real-world applications in container logistics and trade compliance. Featuring top industry tech executives and a BCO’s perspective on AI-driven process efficiencies.
📍 Meet BlueCargo: Booth, Partner Private Suite, or a 1:1 Chat on AI-powered Freight Audits – Book Here
Which event is on your calendar? 📅🚢
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