Upheaval From Disruptions to Mexican Supply Chain Evident in April TV Imports

June 8, 2020 by Paul Gluckman|Trade Business

Sharply reduced April imports of the largest TVs were the result of COVID-19 factory shutdowns in Mexico, where the supply chain for big-screen sets predominantly resides, according to newly released Census Bureau data accessed June 6 through the International Trade Commission’s DataWeb tool. Mexican President Andrés Manuel López Obrador ordered the closure of nonessential factories and businesses on March 31.

U.S. importers took delivery of 2.43 million TVs from all countries in April, 10% higher than in March, but 13.8% fewer sets than in April 2019, DataWeb said. April dollar TV imports of $513.57 million wA 15.6% lower than in March and a stunning 41.4% decline from April 2019. It was clear evidence of the skew toward cheaper product with Mexican supply constrained during the month. The average April TV import was worth $211.24 in customs value, 23.3% lower than in March and 32% below the average $310.85 in April 2019.

TV imports from Mexico consisted of 1.01 million sets in April, down 36.7% from March and down 21% from 2019, DataWeb said. The average Mexico-sourced TV was worth $299.65 in April, down 6.2% from March and 30.1% below the $428.72 April 2019 average.

Mexico was the source of 41.6% of all TV imports to the U.S. in April, down 30.6 percentage points of share from March. April's percentage share also was 3.8 percentage points lower than Mexico’s share in April 2019, when China was still a dominant country of origin for U.S. TV imports. The List 4 Section 301 tariffs that took effect Sept. 1, 2019, on Chinese goods chased much of the U.S. TV supply chain to Mexico.

The diminution in April's Mexican TV supply was even more profound in the largest screen sizes, DataWeb said. The U.S. sourced slightly more than 669,000 TVs from Mexico in April classified under the 8528.72.64.60 tariff code for sets with screen sizes exceeding 44.5 inches. That’s the fewest 8528.72.64.60 goods shipped from Mexico since 597,000 sets were shipped here in March 2018.

Mexico was the source of 57.3% of 8528.72.64.60 imports to the U.S. in April, a 24.9-percentage-point decline from March, DataWeb said. Its share was identical to that of April 2019, when China was still a formidable source of large screen sizes, pre-tariffs, DataWeb said.

U.S. importers in April sourced more 8528.72.64.60 goods than usual from China, Taiwan and Thailand, though not nearly to the scale of the Mexican supply chain in pre-pandemic times, DataWeb said. China shipped 385,400 such TVs to the U.S. in April, 40.3% fewer than in 2019, but a stunning 219.7% increase from March.

Taiwan’s 73,000 imports classified as 8528.72.64.60 goods were a 6.9% increase from March, DataWeb said. Taiwan shipped fewer than 1,000 of those TVs here in April 2019. Thailand’s 35,800 large-screen TVs shipped here were up 339.2% from March, but down 21.9% year-on-year.