Enrique K. Razon Jr., chairman of the world’s largest port operator, ICTSI, said it is still too early to assess the impact of the Trump tariffs. However, he suspects that due to China’s massive industrial capacity, manufacturers may begin seeking alternative markets if access to the U.S. market becomes restricted.
Razon shared his initial thoughts during ICTSI’s stockholders’ meeting on April 24, 2025.
“Depending on how this situation unfolds, there may or may not be an impact. But trade with the United States makes up only 3 percent of our total portfolio,” he said.
“I suspect that, with China’s enormous installed industrial capacity, they will start looking for other markets if they’re unable to access the U.S. market. So maybe one effect offsets the other — but again, it’s still too early to tell,” he added.
As a trade enabler, Razon noted that the only potentially significant impact on ICTSI’s operations would be on its Manzanillo terminal in Mexico. Even so, he emphasized that it remains a “wait and see” scenario.
Overall, he said, “It’s too early to determine the effect of the Trump tariffs, especially since President Trump appears to be flip-flopping daily and causing chaos in the global economy. It’s still too early to tell how these tariffs will ultimately be resolved once the dust settles. Given the diversity of our operations, the only major potential impact could be on our Manzanillo terminal in Mexico — but for now, we’re still watching and waiting.”
