Borderlands Mexico: Mapping supply chains key to surviving tariff wars, experts say

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Mapping supply chains key to surviving tariff wars, experts say; Construction begins on logistics park in Laredo, Texas; WWEX Group opens office in Monterrey, Mexico; and Continental expanding plant in central Mexico.

Mapping supply chains key to surviving tariff wars, experts say

With the Trump administration set to impose tariffs on imports from Canada and Mexico starting Tuesday, trade experts said supply chain mapping can help alleviate the impact of additional costs on materials and shipments.

“I think this is one of the … most important messages that we need to have — clear and thorough mapping of your supply chains,” Alejandro Gomez-Strozzi, a Mexico City-based international trade attorney for Foley & Lardner, said Wednesday during a webinar called “International Trade and Manufacturing in Mexico Under the New Trump Administration: What to Expect and How to Prepare.”

Gomez-Strozzi is a former undersecretary of economy in Mexico and served as a United States-Mexico-Canada-Agreement negotiator for the country during President Donald Trump’s first term.

“You have to make an actually orderly effort to map what is coming into your facilities, from where it is being relied upon by your suppliers, so as not to be surprised if the tariffs are imposed within a week or so, not to be surprised as to what can be tweaked or not in order to move out from any eventual tariff scenarios,” Gomez-Strozzi said.

The webinar was part of Foley & Lardner LLP and In-House Connect’s 2025 In-House Connect Supply Chain & Trade Law CLE Summit. The summit featured experts discussing policy shifts, supply chains, tariffs, international trade laws and more.

Milwaukee-based Foley & Lardner LLP has 1,100 lawyers in 26 offices worldwide, focusing on the energy, health care and life sciences, technology, and manufacturing sectors.

New York-based In-House Connect is an online in-house counsel networking group, with over 10,500 members nationwide.

Gomez-Strozzi said he didn’t believe that Trump would go through with the tariffs against Mexico and Canada, though the White House said it still plans to implement 25% tariffs on imports from the two countries starting Tuesday.

“Wasn’t it a guarantee that if you are a part of the free trade agreement, such as the USMCA, you had the certainty that any party could not increase the tariffs to your exports, except in the case of national security exceptions,” Gomez-Strozzi said.

Mexican and U.S. officials agreed Feb. 3 to suspend the proposed tariffs for one month. As part of this arrangement, Mexico committed to deploying 10,000 National Guard troops to the U.S.-Mexico border to combat drug trafficking.

“That obligation goes to the heart of national security, and that has been argued by the Trump administration to potentially increase tariffs against Canada and Mexico,” Gomez-Strozzi said. “I very much doubt that the justification or the legality of the scope of the tariffs would be justified or would be applicable, meaning you have to provide at least some solid argument that every single product exported out of Mexico is causing or merits to be included in the exception for national security. I very much doubt that every single product, namely avocados, candies, pinatas, automobiles, TV sets, electronics, auto parts, can be justified as a national security exception.”

Fernando Camarena, a Mexico City-based senior tax and business adviser for Foley & Lardner, said the administration of Mexican President Claudia Sheinbaum recently introduced a road map to protect the country’s industries and attract more foreign investment.

“In response to these potential actions from the U.S., … the Mexican government has put a lot of effort into coming up with a plan called the Plan Mexico,” Camarena said. “Plan Mexico was launched by President Claudia Sheinbaum on Jan. 13. It includes tax incentives, provides for efficiency in administrative processes, outlines investment goals for infrastructure, for energy, urban mobility and housing, among others.”

The aim of Plan Mexico is to transform the country into one of the 10 major economies in the world, through foreign investments and bringing more manufacturing operations into the country, Camarena said.

“Currently, Mexico, depending on what measure you take, is between the 13th and the 14th largest economy in the world. The second goal, which I think is the most important one, is to increase the investments in Mexico,” Camarena said. “The third goal of the plan is to increase the local content of Mexico in products that are being manufactured in Mexico.”

Camarena said one of the most important parts of Plan Mexico is incentivizing nearshoring opportunities through tax breaks.

“Regarding nearshoring, which again is for me, the most important part of Plan Mexico, a [federal] decree has already been published on Jan. 21 granting tax benefits to support the nearshoring so this is not only a plan,” Camarena said. “This is something that is already available for companies. The goal of these tax incentives is to stimulate the relocation of companies and the reconfiguration of supply chains close to the U.S. market, and in particular in the manufacturing sector.”

Related: Mexico aims for tariff deal with Trump before March 4 deadline

Construction begins on logistics park in Laredo, Texas

Menlo Equities and Axis Partners are partnering to build a 215,000-square-foot logistics and distribution facility that will be called the Vidal Cantu Industrial Center in Laredo, Texas.

The center will feature 32-foot clearance heights for trucks, 354 trailer stalls, 87 dock doors, two drive-in ramps, a tri-load configuration and a 130-foot truck court, along with 12 acres of additional paved concrete trailer parking, according to Menlo Equities.

Construction of the Vidal Cantu Industrial Center is expected to be completed by the end of the year.

Menlo Equities is a commercial real estate firm based in Menlo Park, California. New York-based Axis is an industrial investment firm.

WWEX Group opens office in Monterrey, Mexico

WWEX Group has opened an office and operations hub in Monterrey, Mexico, aimed at strengthening the firm’s presence in the country.

“This move not only reflects our commitment to growth but the opportunity we see to further expand our capabilities in Monterrey in the years to come,” Joel Clum, COO of WWEX Group, said in a news release.

Dallas-based WWEX Group is one of the largest privately held third-party logistics companies in the U.S. The firm offers parcel, truckload, less-than-truckload, specialty freight and expedited solutions.

Continental expanding plant in central Mexico

German automotive supplier Continental AG is adding a 25,800-square-foot facility to its operation in San Luis Potosi, Mexico.

The expansion will allow the company to increase production and operational efficiency, according to a news release.

Continental has three plants in San Luis Potosi employing almost 4,000 workers. The three facilities manufacture textile conveyor belt systems, hydraulic hoses and tires for the North American market. 

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