Seal-Bin Han

#logistics-operations - February 19, 2025 at 01:33 AM

In 2024, we had a 3PL customer that planned to move their fulfillment operations abroad to take advantage of the Section 321 loophole. Before they could move, the Biden-Harris administration announced plans to close the loophole. Since then, shifting trade policies and Trump-era tariffs have made it less effective for certain products. Multiple customers have approached us looking for alternative solutions, and we’ve heard similar concerns from other 3PLs—including just last week from a major national provider. One of the main themes we're hearing in the industry is that there is just too much uncertainty and risk - as a result, some pretty big brands are moving out of Mexico and securing space in the US while it's still available.