Jabil, Landis+Gyr Meter Shipments May Provide Gauge of Mexico Tariff Impact — Panjiva
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Jabil, Landis+Gyr Meter Shipments May Provide Gauge of Mexico Tariff Impact

Industrials - Capital Goods 284 Mexico 536 Tariffs 1252 U.S. 3450

President Donald Trump has reiterated his commitment to apply tariffs at a 5% rate on all Mexican imports from Jun. 10, Reuters reports, should talks regarding Mexican migration policy not reach a satisfactory conclusion. As outlined in Panjiva’s May 31 research the largest sectors for imports to the U.S. from Mexico are autos with $82.5 billion of shipments, followed by energy and technology hardware.

Yet, the impact will be felt most keenly in sectors where Mexico represents a large proportion of U.S. imports. The highest exposure to Mexico is typically among consumer goods including vegetables – the single highest is tomatoes where 86.6% of imports came from Mexico in the 2018 – and beer where Mexico accounted for 67.4% of U.S. imports.

Outside consumer goods – where tariffs may be rapidly passed on to prices – the largest exposure in capital goods can be seen for goods vehicles where Mexican exports worth $22.8 billion accounted for 79.5% of U.S. imports, Panjiva data shows, as well as tractors worth $8.6 billion with Mexico equivalent to 69.3% of the aggregate. Imports of those products were led by Daimler, Navistar and Paccar.

TRUCKS AND TOMATOES LEAD U.S. EXPOSURE TO TARIFFS

Chart segments U.S. imports by product (HS-4) and origin in 2018.  Source: Panjiva

Among smaller products the utility industry may face higher costs for gas and power meters, the second most exposed non-agricultural product group with Mexico accounted for 73.7% of U.S. imports. There’s be a rapid growth in imports of 22.7% year over year due to the roll-out of so-called smart meters.

The largest shipper from Mexico in the 12 months to Apr. 30 was Jabil Inc. with $344 million shipped with slower-than-average growth of 14.7%. The fastest growth rate has been seen by number two shipper Landis+Gyr whose exports to the U.S. from Mexico were worth $160 million after growth of 154.0%. That allowed it to overtake Badger Meter whose $138 million of shipments had only seen growth of 4.6%.

LANDIS LANDS MORE CUSTOMERS

Chart segments Mexican exports of power and gas meters to the U.S. by shipper on a monthly and three-month average basis.  Source: Panjiva

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