Trump threatens to double tariffs on Mexico, US container imports hit a record, WEG plans a factory in Mexico

The US president has threatened to double tariffs on Mexico over migrant caravans, US container imports hit an all-time monthly high in October as shipments from China kept rising, and the Brazilian manufacturer WEG plans a factory in Mexico to make electrical equipment for energy infrastructure and data centers.

Trump says US tariffs on Mexico could double over migrant caravans

President Donald Trump threatened on November 12 to double tariffs on Mexico immediately unless the country halts caravans of migrants moving toward the US, Supply Chain Dive reports, citing his post on Truth Social. He gave no further details of how the higher tariffs would be put in place. Mexico's president, Claudia Sheinbaum, said at her morning news conference that no migrant caravan has arrived at Mexico's border with the US since Trump's second term began in January 2025.

Mexico is already subject to a 10% US tariff imposed after a forced-labor investigation launched in March, and the two countries are in trade talks within the review of the US-Mexico-Canada Agreement, Supply Chain Dive reports. According to Mexico News Daily, the tariffs Trump could double include those now charged on steel, aluminum and vehicles from Mexico, and Mexico is trying to negotiate a reduction of those tariffs, known as Section 232 tariffs, which were imposed in 2025. With Democrats set to lead Congress after the US midterm elections, three bills could restrict the president's power to set tariffs.

Why it matters: The post does not say which tariffs would be doubled or which goods would be covered, and Trump gave no further details of how an increase would be applied, so its cost for a given contract cannot be worked out yet. Buyers who source from Mexico can list which purchases are already subject to the 10% tariff or to the steel, aluminum and vehicle tariffs, check who pays an increase under each contract, and prepare a cost scenario in case those tariffs are doubled.

US container imports reach an all-time monthly high in October

In October, US container imports reached a record 2,674,808 TEUs (twenty-foot equivalent units), the highest volume for any month, Descartes Systems Group found in a report covered by CSCMP's Supply Chain Quarterly, now Supply Chain Xchange. Shipments from China grew for the fourth consecutive month and reached 987,805 TEUs, the most in any month since January 2025. The largest ports on the East and Gulf coasts gained share from West Coast ports, and port transit delays grew modestly for the third consecutive month, though Descartes saw no sign of broad congestion.

A separate forecast by Hackett Associates and the National Retail Federation expects import volumes at the major US container ports to ease gradually for the rest of the year, after an extended peak season in which ports have stayed busy from spring onward, Supply Chain Xchange reports. Their Global Port Tracker forecasts imports in January 2027 at 3% below the same month a year earlier, in February 2027 at 0.5% below and in March 2027 at 11.2% below. Jonathan Gold of the National Retail Federation said the heavy volumes had caused backlogs at some ports, especially on the West Coast, where containers have waited to be moved by rail. Security guards known as watchmen at some container terminals in Los Angeles and at Long Beach have had no long-term contract since July 2025; a short-term extension averted a strike in early November, and the contract has since been extended several times, most recently through November 20.

Why it matters: Jackson Wood of Descartes advised importers to keep checking how tariffs apply to their goods, the security of the routes they ship on and their carriers' routing choices, which can make costs and transit times harder to plan. Buyers can check whether their own orders arrived much earlier than needed during the extended peak season, which of their shipments moved to East and Gulf Coast ports, and whether those changes should shape their freight and inventory plans for 2027.

WEG plans a Mexican factory for electrical equipment

WEG, a Brazilian manufacturer, will invest US$250 million to build a factory in the Mexican state of Hidalgo to make electrical equipment for energy infrastructure and data centers, Mexico News Daily reports. Economy Minister Marcelo Ebrard announced the project at Sheinbaum's morning news conference and described WEG as one of the world's leading makers of generators, alternators and transformers. The project is scheduled for development between 2027 and 2030, with 2,000 direct jobs expected.

Sheinbaum said critical equipment that Mexico now imports will be made in the country instead. Daniel Godinho, WEG's global vice president, said every data center relies on equipment such as generators, transformers and electric motors, along with distribution and automation systems. WEG has operated in Mexico for over 25 years, employs 6,000 people there and sells through a network of 500 distributors, according to the report.

Why it matters: The factory is scheduled for development between 2027 and 2030, and the report does not name the specific products it will make, so it is a possible future regional source rather than supply for current orders. Buyers who need transformers, generators or other electrical equipment for new sites can note the project, ask WEG which products the Hidalgo factory will make and when it expects to supply from it, and plan current orders on existing supply.

The thread

Each story is about supply into North America: a tariff threat that raises the cost risk of Mexican supply, record US container imports, with much of the increase coming from China, and planned Mexican capacity for equipment that buyers now import.