Today in Global Small Business: It's a Trump Rodeo Ride So Far

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What's affecting me, my clients, my colleagues and other global small business owners:

• Most investors knew things could turn turbulent this year given U.S. President Donald Trump's return to power in the world's biggest economy and financial market, but few predicted the kind of a rodeo ride it has been so far.
• Bitcoin demand declines amid global trade wars.
• Quote of the week:  “American bull riding has been called 'the most dangerous eight seconds in sports.'" – general statement
• JP Morgan research:  U.S. tariffs and what the impact will be on global trade and the economy.
• Japan is upset.  An editorial on Trump's auto tariffs.
• Mexico is upset.  They will respond to Trump's tariffs with immediate measures.

Tariff Crazy

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Trump announced on February 27, 2025 that proposed tariffs on 25% on Canada and Mexico will be implemented on March 4 after a month-long postponement. The president said that these countries had not sufficiently reduced the flow of drugs across the border.

Additionally, Trump also said that China, which already faces 10% U.S. tariffs on its products, “will likewise be charged an additional 10% Tariff on that date.” 

Read more about what it is like to be tariff crazy and how it impacts the global economy, especially in the Asia-Pacific markets.

The Impact of Tariffs, State by State

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The tariffs are coming.  The tariffs are coming.  Run as fast as you can!  Not sure that will do any good.  According to President Donald Trump, the sweeping U.S. tariffs on imports from Canada and Mexico are set to begin next week “will go forward” when a monthlong delay expires, Trump said Monday [2/24/25], and they will begin “on time, on schedule.”

That will affect each state differently. For some states, such as Montana and New Mexico, nearly all of their import and export exposure is to a single targeted country.  Energy — such as oil for Montana and Oklahoma, electronics for New Mexico, and auto parts such as EV batteries for Texas and California, where Tesla has a big presence — looms large in the trade battle. 

But the impact to local economies and consumer prices will range widely.

Fabletics Is Transforming Supply Chain to Support Global Expansion

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Activewear fashion brand Fabletics operates more than 100 stores in the U.S., Canada and Europe, with expansion expected into Mexico in 2025.  They are in the process of transforming supply chain to support global expansion.

Fabletics is deploying the Blue Yonder SaaS-based supply chain planning suite, including solutions for demand planning, allocation & replenishmen, merchandise financial planning, and size scaling, to help support expansion of its global footprint. 

Read more to learn how Fabletics is transforming supply chain to support global expansion.

Is Canada Throwing Mexico Under the Bus?

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Trump recently threatened he would impose a blanket 25% tariff on both Canada and Mexico when he takes office in January unless they secured their shared borders with the US. 

That said, Canada is being accused of throwing Mexico under the bus amid a tariff threat ahead of President-elect Donald Trump's second term in the White House.

Canadian officials were quick to distance their country's border issues from those of Mexico, arguing that drug smuggling and unlawful crossings at the southern border were much higher, and that Mexico was serving as a "back door" in North America for Chinese investment.

Those remarks have not gone unnoticed in Mexico.

Here Come the Tariffs!

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From Wiley on November 26, 2024:

On November 25, 2024, President-Elect Trump made two posts to his Truth Social account in which he stated that on day one of his second Administration, he would impose additional tariffs of 10% on all products from China, and additional tariffs of 25% on all products from Canada and Mexico. The two posts can be found here (China) and here (Canada and Mexico).

More on Section 301 China Tariffs from ST&R.  And USTR announces the long-awaited Section 301 exclusion process for domestic manufacturing machinery with info provided by Amundsen Davis.

Lots to digest.  The uncertainty is insane.

Today in Global Small Business: How Christopher Columbus Became an Italian-American Icon

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What's affecting me, my clients, my colleagues and other global small business owners:

• How Christopher Columbus became an Italian-American icon.
• Klasha raises $2.4 Million in seed funding to build technology for cross-border commerce in Africa.
• Mexico to require more documentation for shipments traversing the country.
• Quote of the week:  "Following the light of the sun, we left the Old World." – Christopher Columbus
• Major reform of the international tax system, which will ensure that Multinational Enterprises (MNEs) will be subject to a minimum 15% tax rate from 2023.
• Small businesses that rely on Facebook and Instagram question their loyalty after global outage.

Diversification Is Key: China or Mexico?

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Global small business owners get it.

If there is one thing the pandemic taught the world, it was that we are over-reliant on China for everything from the key ingredients used to make cleaning agents to pharmaceuticals, surgical masks to personal protection equipment. That’s not diversification of risks. 

So where are people turning to?  Mexico.  And according to Foley & Lardner, many U.S. executives are pretty enthusiastic about it.

How About Mexico for Manufacturing?

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I interviewed Carlos Balderrama, executive president of CODESIN about Sinaloa, a state in northwest Mexico. What follows is an excerpt from our interview, when we talked about what makes Sinaloa a good investment opportunity right now.

Laurel Delaney: Not too many people have heard of Sinaloa, Mexico. Why is that?

Carlos Balderrama: Americans are better acquainted with Mazatlán, which is located on the south coast of the state and considered one of the premier tourist destinations of Mexico. We are a state with an agricultural and food industry tradition; even though we have only 3 percent of the nation’s territory and 2 percent of its population, we are responsible for 30 percent of Mexico’s total production of food and also supply much of the off-season produce to the United States.

Read the entire interview:  An Interview with Carlos Balderrama of CODESIN

Reaching Mexico's Consumer Base

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Based in Miami, GEE International, LLC is the U.S. based sales and marketing arm of Grupo Editorial Expansión, a Time Inc. Company since August, 2005. GEE International is the ideal source for American and international companies to reach Mexico's most affluent and diverse consumer base.

With more than 40 years experience, GEE is Mexico's leading publisher of high-end magazines.

Have a look at Expansion Magazine's 50 Most Powerful Women of 2011.

Global Economies Surge Forward

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With or without the United States, the global economy is surging forward.

MEXICO CITY (AP) – Mexican telecom tycoon Carlos Slim is the first man from a developing nation to become the world’s richest person – a shift that underlines the loosening of America and Europe’s stranglehold on the top spots in the billionaires’ club.

Find out how there was a time when Americans held top spots in the world and how that is changing here.

Related articles here:

Carlos Slim Arrives in Lebanon, Will Meet President
Carlos Slim richest person in the world
#1 Carlos Slim Helu & Family

Posted by: The Global Small Business Blog