TAG Industrial Watch: April 19, 2025

President Trump’s initial tariffs on Chinese goods enacted during his first term in office resulted in the unintended consequences of nearshoring, the movement that essentially redirected some imports from China to Mexico for final assembly before shipment into America. In response to the nearshoring loophole, the president has seemingly used the fentanyl crisis as a national emergency to legally levy tariffs on Mexican imports that would otherwise be duty-free under the president’s own free trade agreement. Unfortunately, the president’s new wave of tariffs will probably result in more unintended consequences. Instead of reshoring manufacturing back into the U.S. in mass, the tariffs will likely drive up the cost of imported capital goods used in manufacturing here at home. For example, the 25% tariff rate on imported autos and key auto parts, on top of the standard 10% tariff rate, is having a big impact on autos manufactured in America, sometimes comprised of 30% Mexican parts alone. With car prices poised to rise, demand will probably be dampened, resulting in less domestic production.

While in theory, the tariffs will expand the production capacity of key auto parts made in the U.S., the president’s fixed term in office, let alone the daily unpredictability of his tariff rates, is discouraging for the development of new factories that could take years to build. With regard to domestic auto parts manufacturers and any producer in a similar predicament, today is a good time for those companies that own their production facilities to consider a sale-leaseback. The capital generated from a leaseback may prove pivotal in helping to sustain business operations in the midst of economic and political uncertainty.

I N D U S T R I A L   N E W S

Trump Tariffs Won’t Lead Supply Chains Back To U.S. But
Companies Will Go Low-Tariff Globe-Hopping: CNBC Survey
CNBC – April 14, 2025
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Trump Warns Exemptions On Smartphones, Electronics
Will Be Short-Lived, Promises Future Tariffs
The Guardian -April 13, 2025
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Industrial Occupiers Choosing To Buy Rather Than Rent
GlobeSt.com – March 26, 2025
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How Is Class B Industrial Adapting To Modern Demand?
Commercial Property Executive – March 11, 2025
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US Energy Infrastructure Gets A D+ From
American Society Of Civil Engineers
Utility Dive – March 27, 2025
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R E G I O N A L   N E W S

West Garfield Park Industrial Building Sells
Connect CRE – April 16, 2025
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Venture One Real Estate Acquires 37,287-
Square-Foot Industrial Property In Elmhurst
REjournals – April 17, 2025
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Marcus & Millichap Brokers Sale Of 6,528 SF
Industrial Property In Chino, California
REBusiness – April 16, 2025
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This Week’s Dallas-Fort Worth Deal Sheet: Work
Begins On Industrial Facility Near DFW Airport
Bisnow – April 14, 2025
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Top 10 Emerging Industrial Markets
Commercial Property Executive – March 6, 2025
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