Latin America Supply Chain

Latin America Supply Chain

Shein posts $99M Q1 loss amid de minimis repeal

Shein reported a $99 million net loss for Q1 2026 — a sharp reversal from $395 million in profit a year earlier — driven primarily by the permanent repeal of the U.S. de minimis duty exemption in January 2025. The company cited added costs from U.S.-China tariff uncertainty and spillover effects from the U.S.-Israel war on Iran, which disrupted air cargo routes and cooled demand. Shein is raising U.S. prices and advancing its Hong Kong IPO plans while expanding nearshore manufacturing in Mexico and Vietnam. CBP has collected over $1 billion in new duties since the policy change.

2026-07-30

Latin America Supply Chain

Thailand, Argentina emerge as top next-wave manufacturing hubs

Thailand and Argentina have emerged as top-tier next-wave manufacturing hubs, per Verisk Maplecroft’s July 16, 2026 assessment. Thailand leads Southeast Asia in auto and AI-driven electronics manufacturing, while Argentina leverages U.S. and EU trade deals to supply critical minerals and industrial exports. Chile serves as a lower-risk Pacific alternative. The shift reflects a strategic pivot beyond labor cost toward regulatory stability, market openness, and access to strategic industries—factors deteriorating in Vietnam and Malaysia since 2024. Companies acting early to build supplier relationships and test entry strategies gain decisive advantage amid rising geopolitical risk.

2026-07-30

Latin America Supply Chain

Puratos scales US wheat sourcing: 30% to regenerative agriculture by 2030 target

Puratos has enrolled approximately 30% of its U.S. wheat flour volumes in mass-balance regenerative agriculture programmes, advancing toward its 2030 target of 50% regenerative sourcing. The initiative, led by Senior Procurement Manager Luther Hardin and Product Director Michael Gleason, emphasizes practical, scalable implementation through crop rotation, reduced tillage, and cover cropping. Industry data shows 70% of global firms embed sustainability in procurement, yet 85% struggle to identify sustainable suppliers. Puratos builds on programmes launched in 2022 and uses scientific expertise to drive biodiversity, land restoration, and emissions reduction.

2026-07-29

Latin America Supply Chain

US backs Madagascar rare earths project to counter China’s 85% supply share

The United States is supporting a rare earth elements project in Madagascar to reduce dependence on China, which controls 85% of global rare earth processing. Backed by the U.S. Department of State and the Minerals Security Partnership, the initiative targets three priority geological zones in southern Madagascar and aligns with broader efforts including a $1.2 billion U.S.-Rwanda separation facility deal. Feasibility studies began in Q2 2024, with regulatory approvals anticipated by late 2025. The MSP — comprising 14 nations — has mobilized $3.2 billion across 20+ critical mineral projects since June 2022.

2026-07-29

Latin America Supply Chain

NAM urges USMCA upgrades as 15 of 18 U.S. manufacturing sectors boost exports

The National Association of Manufacturers (NAM) is urging policymakers to strengthen the United States–Mexico–Canada Agreement (USMCA) during its May 2026 six-year review. According to a NAM report released May 13, 2026, 15 of 18 U.S. manufacturing sectors increased exports to Canada and Mexico since USMCA took effect in 2018. NAM proposes updates to rules of origin for EV batteries, customs digitization, AI-enabled trade tools, and labor enforcement. USMCA’s auto regional value content requirement stands at 75%, up from NAFTA’s 62.5%. U.S. automotive parts exports to Mexico rose 18.3% since 2018.

2026-07-28

Latin America Supply Chain

UK Exporters Face New US Customs Rules Amid 10.3% Drop

UK exporters face urgent logistical recalibration following the US suspension of the $800 de minimis exemption on 24 July 2026. New Entry Type 13 rules require licensed customs brokers, enforce all duties—including the 10% Section 122 levy—and phase out simplified IMDW processing by 24 October 2026. Concurrently, UK goods exports to the US fell 10.3% (£6.8bn / $9.06bn) over the past year. David Taylor of Mark 3 International warns of rising costs, service degradation, and carrier unpreparedness—urging exporters to engage specialized compliance partners.

2026-07-28

Latin America Supply Chain

China imports 1.26M tons U.S. soy; Brazil holds 90% share

China imported 13.554 million tons of soybeans in June 2026 — a record monthly volume — with 12.075 million tons coming from Brazil (nearly 90%). U.S. purchases rose to 1.26 million tons, reflecting early steps toward a bilateral commitment of 25 million tons annually through 2028. Yet analysts stress caution: actual shipments lag announcements, and U.S. output — now projected at 121.8 million tons — remains vulnerable to July–August weather. Brazil’s cost advantage (US$1.20/bushel lower production cost) and pricing edge (US$0.50–US$0.60/bushel discount) secure its leadership despite geopolitical shifts.

2026-07-27

Latin America Supply Chain

US invests $80M in domestic timber after 25% Brazil tariff

The U.S. Department of Agriculture has committed $80 million to boost domestic timber production in Oregon and Nevada — $50 million for Tahoe Forest Products in Nevada and $30 million for Clatskanie Scion LLC in Oregon — days after imposing a 25% tariff on most Brazilian processed wood. The investment aligns with a goal to raise U.S. timber output by 25%, reduce wildfire fuels, and create at least 35 jobs. Brazilian industry data shows 40% of its processed wood output goes to the U.S., and prior 2025 tariffs caused $500 million in trade losses. Since program inception, USDA has invested $165.2 million across ten states.

2026-07-26

Latin America Supply Chain

Brazilian exports to Mexico drop 42.5% amid new tariffs

Brazilian industrial exports hit by Mexico’s January 2026 tariff hike fell 42.5% in H1 2026 versus the prior three-year average—equivalent to US$91.5 million. The policy affects 171 products, including pipeline-grade steel pipes whose exports collapsed 100% in Q1 2026. With US$665 million in exports at risk and 90.3% of 474 identified trade opportunities subject to tariffs, CNI urges tariff exemption and fast-tracked free trade talks. A potential agreement could lift joint GDP by US$13.8 billion and draw US$8 billion in investment.

2026-07-26

Latin America Supply Chain

CADE Recommends $1.2B Penalty Against Bayer, Monsanto for Soy Seed Antitrust

Brazil’s antitrust authority CADE recommends a $1.2 billion penalty against Bayer and Monsanto for anticompetitive practices in the soy seed market, citing eight years of investigation into incentive programs for Intacta biotech adoption and the Monsoy Multiplica discount scheme. The case stems from CADE’s 2018 review of Bayer’s $63 billion Monsanto acquisition and targets conduct between 2018–2026. A final ruling by CADE’s tribunal is expected within 90 days. Bayer denies wrongdoing, asserting full compliance with Brazilian law.

2026-07-25

Latin America Supply Chain

US exempts 47 Brazilian agro products from 12.5% tariff

The U.S. has exempted 47 Brazilian agricultural products — including coffee, beef, avocado, and sugar — from its new 12.5% additional tariff, following a Section 301 investigation launched in July 2025. The 400-page USTR report cited concerns over forced labor, deforestation policy, and payment system interoperability. Exemptions were granted based on U.S. supply needs, especially for beef amid historic domestic shortages. Abics stated the coffee exemption provides 'breathing room' for export recovery. Tariff relief hinges on precise HTSUS classification, and the measure affects 23.1% of Brazil's total U.S. exports.

2026-07-25

Latin America Supply Chain

Bab el-Mandeb Blockade Threatens 20% Fertilizer Cost Rise for Brazil

A potential blockade of the Bab el-Mandeb Strait threatens to raise Brazilian fertilizer import costs by up to 20%, disrupt Black Sea grain exports to Asia, and inflate diesel and freight expenses. Saudi Arabia — a key supplier of phosphate fertilizers and sulfur to Brazil — faces severe export constraints if both Red Sea and Hormuz routes are compromised. Analysts warn DAP prices could surge ahead of India’s major procurement auction, while wheat and corn shipping premiums may rise 15–25%. Brazil’s heavy reliance on imported fertilizers (85%+) and road transport magnifies domestic exposure.

2026-07-22