Developments in international trade and logistics continue to shape supply chains between the U.S. and neighboring countries. This week: Trade tariffs could increase consumer prices in the short term, an expert says; a logistics firm expands its operations in Texas; a supply chain facility opens near Phoenix; and plans for a major industrial park investment in central Mexico emerge.
Trade Tariffs Could Increase Consumer Prices in the Short Term, Expert Says
Proposed tariffs on imports could have widespread effects, impacting manufacturers, transportation providers, and consumers alike, according to industry experts.
“There will definitely be an increase in pricing for imported goods, which will push companies to look for alternative suppliers or manufacturing sites,” said a supply chain consultant.
New tariffs, set to take effect in the coming months, would include a 25% tax on certain imported goods, along with an additional 10% tax on select items.
Global business leaders have been encouraged to manufacture their products domestically to avoid these tariffs. However, tariffs function as taxes paid by businesses when foreign-made goods arrive at national borders, not as penalties imposed on other countries.
According to a report from an independent economic research organization, tariffs raise the price of foreign-made goods, increasing costs for consumers.
“Overall, using standard economic methods, we find that the full incidence of the tariff falls on domestic consumers,” the report noted. “We also see similar patterns for foreign countries that have retaliated, which indicates that trade restrictions also reduce real income globally.”
The impact of tariffs extends beyond price hikes. While there is potential for increased domestic manufacturing jobs, experts suggest the transition would take time.
“There are complexities to consider—the increased costs will push companies to reassess automation and supply chain strategies,” said the consultant. “A shift in manufacturing requires significant investment and planning, which many companies may not undertake if policies change within a short timeframe.”
In the short term, tariffs could affect the cost of raw materials such as steel, aluminum, and essential minerals, potentially disrupting industry competitiveness.
“Depending on the sector, the impact could be significant,” the expert added. “Higher material costs or shipment delays could trigger broader supply chain disruptions.”
To mitigate these challenges, companies may explore long-term contracts, diversify supplier networks, and increase automation in production and distribution centers.
“The ability to adjust supply chains varies from company to company,” the expert noted. “Some may find alternative manufacturers within months, while others could take years. To maintain consistency and customer trust, many businesses might opt to continue with existing suppliers despite increased costs.”
If tariffs expand globally, other countries may introduce retaliatory measures against exported goods.
“Similar to past trade conflicts, other nations could take a protectionist stance and impose tariffs in response,” the consultant said.
Logistics Firm Expands Operations in Texas
A logistics company specializing in packaging and distribution has opened two new facilities totaling 300,000 square feet near Austin, Texas.
The expansion will support logistics solutions for high-tech manufacturing industries in the region and is expected to create up to 100 new jobs. The company already has an established workforce in the area and continues to expand its footprint to meet growing demand.
Supply Chain Facility Opens Near Phoenix
A supply chain solutions provider has leased a 483,300-square-foot facility in an industrial park near Phoenix, Arizona.
The facility will support third-party logistics services for an alternative energy company operating in the region. The location is strategically placed near key transportation hubs, enabling efficient distribution.
The company, which provides logistics and consulting services across North and South America, specializes in handling heavy cargo and complex supply chain projects.
Industrial Park Investment in Central Mexico
A real estate firm specializing in industrial developments is investing $83 million to build a logistics park in central Mexico.
The new industrial park, spanning 356 acres, is scheduled to open in 2026 and will cater to domestic and international companies in the automotive, technology, and logistics sectors.
Located in a major manufacturing hub, the site will provide infrastructure for companies involved in automotive production and supply chain logistics. Reports indicate that a significant portion of the region’s manufacturing output is designated for export.
The real estate firm leading the project has decades of experience developing industrial parks and logistics facilities across North America.