Upheaval From Disruptions to Mexican Supply Chain Evident in April TV Imports
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, said newly released Census Bureau data accessed Saturday through the International Trade Commission’s DataWeb tool. Mexican President Andres Manuel Lopez Obrador ordered the closure of nonessential factories and businesses March 31.
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U.S. importers took delivery of 2.43 million TVs from all countries in April, 10% higher than in March, but 13.8% fewer than in April 2019, said DataWeb. April dollar TV imports of $513.57 million were 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 had $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 were 1.01 million sets in April, down 36.7% from March and 21% from 2019, said DataWeb. The average Mexican-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 41.6% of all TV imports to the U.S. in April, down 30.6 points of share from March. April also was 3.8 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 on Chinese goods chased much of the U.S. TV supply chain to Mexico (see 1911070010).
The diminution in April's Mexican TV supply was even more profound in the largest screen sizes, said DataWeb. 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 March 2018.
Mexico was 57.3% of 8528.72.64.60 imports to the U.S. in April, a 24.9-percentage-point decline from March, said DataWeb. Its share was identical to that of April 2019, when China was still a formidable source of large screen sizes, pre-tariffs, said DataWeb.
U.S. importers in April sourced more good classified as 8528.72.64.60 than usual from China, Taiwan and Thailand, though not nearly to the scale of the Mexican supply chain in pre-pandemic times, said DataWeb. 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 up 6.9% from March, said DataWeb. Taiwan shipped fewer than 1,000 of those TVs here in April 2019. Thailand’s 35,800 large-screen TVs were up 339.2% from March, but down 21.9% year-on-year.