US- Mexico Trade

U.S.-Mexico Trade

Tough talk in Washington on U.S.-Mexico trade is sending a cloud over the logistics boom at the border. A terminal that trucker Landstar System Inc. just opened at Laredo, Texas, is the latest in a series of investments that manufacturers, transportation operators and logistics companies have made to handle the burgeoning border trade, WSJ Logistics Report’s Brian Baskin writes. Many of these projects were planned with a view that a surge in Mexican imports would continue for years to come—and before President Donald Trump began sending barbs and “border tax” threats at manufacturers that move automobiles, car parts and industrial equipment between the countries. Logistics and transport companies may see their investments crumble if the sharp words lead to a trade war. Still, there could be an upside to restructured supply chains: if manufacturers set up plants on both sides of the border to comply with new trade terms, companies would have the capacity in place to handle the goods.