Rice University's Baker Institute for Public Policy’s Post

🇲🇽 Mexico's Strategic Shift in Trade Practices   Mexico is making significant changes to its trade practices to maintain its position in the U.S.-Mexico-Canada Agreement (USMCA). Facing criticism for allegedly allowing Chinese parts to enter North America, Mexico's government, led by President Claudia Sheinbaum, is pushing for the replacement of Chinese imports with locally produced parts. This initiative aims to strengthen local manufacturing and reduce dependency on Chinese imports. Additionally, Mexico is restructuring its regulatory bodies to align with USMCA requirements, ensuring compliance and preventing potential exclusion from the trade pact. The country is also preparing to start microchip production, although challenges remain in reducing Chinese import reliance.   At John S. James Co., we understand the complexities of international trade and the importance of compliance with trade agreements like the USMCA. Our expertise in U.S./Mexico and U.S./Canada shipping ensures that your business navigates these changes smoothly. Whether you need assistance with customs brokerage, freight forwarding, or understanding the implications of new trade regulations, we are here to help. Visit johnsjames.com to learn more about our comprehensive services and how we can support your business in adapting to the evolving trade landscape.   #TradeNews #USMCA #MexicoTrade #CustomsBrokerage #FreightForwarding #JohnSJamesCo #InternationalTrade #SupplyChain #MicrochipProduction #TradeCompliance #USMexicoCanada #Nearshoring #Manufacturing #TradeRegulations #Mexico #Canada

BYD's expansion plans in Mexico face uncertainty with Trump's proposed tariffs on Mexican and Chinese goods. Despite opening talks with Mexico's President Sheinbaum, BYD's plant proposal remains unconfirmed, leaving their international strategy in question. #BYDElectric, #TrumpTariffs, #MexicoManufacturing, #AutoIndustry, #TradePolicy, #ElectricVehicles, #GlobalTrade, #InternationalBusiness, #MexicoTrade, #ChinaAutoIndustry

#StatecraftInTheNews: Chinese Commerce Minister Wang Wentao and his American counterpart will soon hold talks on trade and economic ties, according to Chinese state media. They will focus on key issues like tariffs on electric vehicles (EVs) and batteries. Last month, China voiced "grave" concerns over additional US tariffs and investment restrictions. A fresh round of tariffs on $18B of Chinese goods, including EVs and batteries, took effect in late September. The Biden Administration said these tariffs protect domestic industries from China's "excess production capacity." Meanwhile, China has promised retaliation but remains open to dialogue. China has long criticised US policies, claiming they aim to suppress China's economic rise. However, ongoing negotiations reflect a willingness to engage, especially with the possibility of Donald Trump's return to the White House. Trump has hinted at imposing tariffs of 60% or more on Chinese goods if re-elected. This keeps trade relations high on the agenda for both sides ahead of the US election. Meanwhile, China’s relations with the EU are strained over allegations of unfair industrial policies backing Chinese EVs. The EU may vote on definitive levies for China-made EVs this month.

U.S. lawmaker has introduced a bill proposing tariffs on Chinese imports, starting at 35% for non-strategic goods and 100% for strategic goods. The bill would also remove de minimis treatment for lower-value packages coming in from China. #Tariffs #USCustoms #Compliance #DeMinimis #China #Trade

You’ve likely heard the word ‘tariffs’ more times in the last month than ever before! President-elect Trump’s proposed tariffs on imports from China, Canada, and Mexico are part of his “America first” approach. If put into effect, these policies will have an array of impacts across industries. For the manufacturing and distribution sector, companies may need to begin identifying suppliers in non-tariffed markets or near shoring your operations closer to the U.S. The potential for costs to be passed onto the consumer will have ripple effects across sectors, so it’s crucial that all business leaders are aware of these policies from January onward. My colleague, Kevin Rhode, dives into potential legislation and repercussions on manufacturing in this Industry Today article: https://ow.ly/tblZ30sIyTl #Tariffs #Manufacturing #NearShoring #SupplyChain

The notion that China and America are on the brink of a trade war is outdated; they've long been embroiled in a full-fledged conflict, which appears to be escalating. President Trump's initial tariffs failed to induce policy changes in Beijing, and President Biden, despite reversing many of Trump's actions, has maintained these tariffs, with U.S. Trade Representative Katherine Tai asserting their necessity. Biden's administration has intensified pressure on China by restricting exports of key technologies and offering subsidies to domestic chip manufacturing. Recent talks of additional tariffs and trade penalties from both sides further underscore the escalating tension. While China has imposed its tariffs in response, their impact on the U.S. economy is limited. With support from allies like the EU, Japan, and the UK, Washington holds a stronger position in this economic confrontation, suggesting a prolonged struggle regardless of political outcomes. https://lnkd.in/dX4dcUBg

US to impose export restrictions against up to 200 Chinese firms — agency According to Reuters, the Commerce Department plans to publish the new regulations "prior to the Thanksgiving break" WASHINGTON DC, November 23/ The US administration plans to impose a number of new export restrictions against Chinese firms next week, Reuters reported citing an email by the US Chamber of Commerce. The Commerce Department plans to publish the new regulations "prior to the Thanksgiving break," next Thursday, the agency said. The new regulations could add up to 200 Chinese chip companies to a trade restriction list that bars most US suppliers from shipping goods to the targeted firms, according to the email. #business #finance #financialservices

Our Senior Advisor Ryan Hass writes for The Brookings Institution on the differing visions of presidential candidates Joe Biden and Donald Trump on US trade relations with China: "Trump favors a protectionist approach of ratcheting up tariffs on China to compel Beijing to make concessions...[and] supports efforts that incentivize multinational companies to exit China and return to the United States, or at a minimum, shift supply chains outside of China. Biden advocates working with allies and investing at home to put America on a stronger economic footing to outcompete China." https://lnkd.in/e855hRUV

Where will manufacturers go when faced with possible trade wars? Check out Elisabeth Buchwald’s CNN article to find out.

As Donald Trump returns to the U.S. presidency following the 2024 election, the business community is gearing up for significant shifts in domestic and international trade. During his initial tenure, Trump’s “America First” approach altered trade relationships, emphasizing domestic manufacturing and reducing dependence on foreign suppliers. Tariffs on billions of dollars in goods from China created ripple effects for industries reliant on international goods and resources. As Trump enters his new term, his administration is likely to further support U.S. manufacturing through trade restrictions, tax incentives, and potential new tariffs aimed at protecting American industries. Check out the newest post on our blog for our full thoughts. #Trump2024 #FreightForwarding #USPolitics