Tariffs Threaten Mexico’s Auto Production, Push Demand for More Capacity in Cross-Border

Facing steep new tariffs, automakers like Nissan are reconsidering production strategies, including a potential shift from Mexico to Japan, to mitigate financial strain. This move reflects a broader industry realignment as companies scramble to protect margins and stabilize supply chains amid evolving trade policies. 

Key Challenges: 

  • Rising tariff costs disrupting existing manufacturing and sourcing models.
  • Pressure to rapidly relocate production (e.g., Mexico to Japan) to avoid duties. 
  • Margin erosion and supply chain instability due to shifting trade conditions. 

PRIMO’s Strategic Response:

PRIMO combats these challenges with a robust carrier network and human-first oversight, enabling automakers and suppliers to maintain operational fluidity. By optimizing logistics through technology and collaborative partnerships, PRIMO ensures seamless freight movement, cost efficiency, and adaptability to sudden trade policy shifts. This approach empowers businesses to navigate tariff-related disruptions while safeguarding supply chain resilience and long-term competitiveness.

Reference: Nissan weighing production shift to mitigate tariffs | Supply Chain Dive