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


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.


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%.


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

PANJIVA RESEARCH is a service provided by Panjiva, Inc. ("Panjiva") to relevant global subscribers, and are deemed to be Panjiva "Services" subject to the Panjiva Terms & Conditions of Use. Information contained within or made available via the Services is for informational purposes only and nothing in the Services shall constitute or be construed as an offering of financial instruments, or as investment advice or recommendations by Panjiva, Inc. or its affiliates of an investment strategy or whether to "buy", "sell" or "hold" an investment. The Services may include views and commentary about customers of Panjiva. No aspect of the Services is based on consideration of your individual circumstances, and you should determine on your own whether you agree with the information contained within or made available via the Services. Employees involved in Panjiva Research may hold positions in securities analyzed or discussed in the Services. Panjiva does not make any express or implied warranties, representations, endorsements or conditions with respect to the Services and the information contained within or made available via the Services, including without limitation, warranties as to the usefulness, completeness, accuracy, currentness, reliability or sufficiency of any information (including, without limitation, conclusions, statements, opinions, estimates, forecasts or projections of any kind) and expressly disclaims any implied warranties. Neither this disclaimer nor any of its contents may be forwarded or redistributed without the prior written consent of Panjiva. © 2019 Panjiva, Inc. All Rights Reserved.