Mitigating the Impact of Import Tariffs on LATAM Brands

Recent policy changes enacted by U.S. President Donald Trump have introduced new tariffs on imports from Mexico, Canada, China, and other key trade partners. These measures have already increased costs for importers while also triggering retaliatory tariffs on U.S. exports - significantly impacting consumer sentiment and causing chaos across markets worldwide.  

Trump's current plan sets a 10% baseline tariff across the board, with additional ‘reciprocal tariffs’ on 60 countries with whom there are trade imbalances.  

In an already complex global trade environment, these new challenges heighten uncertainty, disrupt supply chains, and introduce additional costs in the form of compliance, delays, and bureaucratic hurdles. We understand the concerns these changes bring to businesses importing products from Latin America, and while we cannot eliminate tariffs, we can help mitigate their financial and operational impact.  

Another consideration is the impact these tariffs will have on nearshoring, which has already grown significantly over the past decade. While research from KPMG has shown that controlling costs remains ‘the most important outcome in supply chain strategies at 33%’, manufacturers and retailers have increasingly opened new facilities across areas of North America and are more ‘willing to accept higher operational costs within the region in exchange for tariff stability’.  

At the end of the day, these new tariffs (regardless of the duration and ongoing uncertainty surrounding them) has led to shippers not knowing where to turn.  

For those looking to mitigate risk and take advantage of new opportunities that may arise with an even faster shift towards near-shoring over the next several years, here are some things to keep in mind as you navigate these volatile waters. 

Strategies to Help You Save 

1. Consolidate Your Vendors to Optimize Cost Efficiency

Working with a large number of logistics providers can lead to redundancies, inefficiencies, and escalating costs, especially in times of tariff volatility. By consolidating your logistics operations into less providers or a single 3PL, you benefit from: 

• Reduced administrative overhead and redundant fees 

• Streamlined operations with fewer delays 

• Improved risk management and supply chain flexibility 

• Cost savings through better-negotiated rates and modal conversions 

Source Logistics can support you through leveraging our extensive network of 23 warehouse facilities, e-commerce fulfillment services and U.S. and cross-border transportation solutions. By utilizing our complementary solutions, we can identify opportunities for consolidation which reduces the extent to which you are subject to tariffs and optimizes costs at every touchpoint. 

2. Gain Full Visibility & Plan Smarter with Advanced Technology

In an uncertain trade environment, real-time insights into your supply chain are critical. Leading Warehouse and Transportation Management Systems provide: 

• Complete visibility into inventory levels, shipments, and delays 

• Data-driven business intelligence to optimize planning and budgeting 

• Rapid warehouse deployment for storage of seasonal or project freight 

• Predictive analytics to help mitigate risks before they impact operations 

This level of control empowers you to make informed decisions, proactively store your product safely ahead of pending regulation changes, prevent unnecessary storage fees, and adjust your strategies as tariff structures evolve. 

3. Simplify Compliance with Expert Cross-Border Support

Tariffs also come with increased regulatory scrutiny. Non-compliance with evolving U.S. import regulations (e.g., USDA, FDA, FSMA) can lead to costly delays, rejections, and penalties. 

You can better navigate compliance by: 

• Ensuring adherence to U.S. import and food safety regulations 

• Managing customs documentation to avoid delays 

• Working with our bilingual teams to ensure smooth and direct communication in each stage of the shipment process 

• Offering SQF-certified warehousing and C-TPAT-compliant transportation solutions to minimize inspections and additional fees 

This will help your shipments move efficiently, reducing the risk of disruptions caused by mismanaged compliance processes. 

4. Optimize Routing and Carrier Flexibility to Reduce Costs

It’s likely that new tariffs will introduce unexpected delays at different ports, in different ways. Choosing the right shipping routes - and carriers who can support you at these points - can significantly impact tariff-related expenses.  

Our ability to monitor this in real time will enable us to help you make smarter routing decisions on how to bring your goods into the US most efficiently. 

Optimize transportation strategies by: 

• Identifying the most cost-effective and reliable shipping routes 

• Directly managing drayage and trucking compliance to ensure smooth border crossings 

• Leveraging your 3PL’s extensive carrier network for competitive rates on drayage, local delivery, and less-than-truckload (LTL) shipping 

By carefully coordinating shipments with U.S. port schedules and reducing exposure to congestion risks, you will maintain better service levels, improve transit times, and ensure on-time deliveries. 

Your Cultural Companion to Success 

At Source Logistics, we recognize uncertainty can be a challenge – but it doesn’t have to mean total disruption. Our multi-cultural and bilingual team has been dedicated for 25 years to working alongside companies like yours to analyze your supply chain, identify cost-saving opportunities, and develop long-term, resilient strategies that help you thrive despite changing trade policies. 

We are here to help you navigate your options, mitigate risks, and offset the impact of tariffs with smarter logistics solutions. Act now and partner with us to maintain cost efficiency, compliance, and supply chain resilience in today’s evolving trade landscape. 

Contact us today and let’s work together to turn challenges into opportunities.