MARKET BRIEF | January 2026
25% Tariff Enacted for a Narrow Group of Semiconductors
President Donald Trump enacted a 25% tariff on a narrow group of advanced semiconductor imports, targeting high-performance chips used in AI and data-intensive computing. The action follows a national security review under Section 232 that found U.S. dependence on foreign chip supply chains poses economic and defense risks. The tariffs apply only to select processors, and exclude chips destined for domestic research, data centers, consumer products, and public-sector use. The move is designed to accelerate U.S. semiconductor manufacturing, while limiting disruption to critical innovation ecosystems.
DOT Withholds $160M from California Over Unlawful Trucker DLs
The U.S. Department of Transportation is withholding about $160 million in federal safety funding from California after the state missed a January 5 deadline to revoke more than 17,000 commercial driver’s licenses that were improperly issued to foreign drivers. The Federal Motor Carrier Safety Administration (FMCSA) determined the licenses did not comply with federal rules, citing expiration dates beyond drivers’ lawful U.S. presence. California had postponed the revocations, prompting this action. The FMCSA insists on strict compliance with safety regulations, while state officials argue they had been negotiating timelines.
Mexico Implements New Automotive & Parts Tariffs
Mexico has introduced sweeping new tariffs on vehicles and automotive components imported from countries that do not have a free trade agreement with the country, including China, Brazil, and India. Duties on finished vehicles can reach as high as 50%, with significant added costs on parts and assemblies as well. The move represents a major policy shift that has the potential to reshape global automotive supply chains. Automakers and tier-one suppliers will likely reassess sourcing strategies, production footprints, and cross-border transportation flows. The tariffs are also expected to accelerate nearshoring activity in North America, increasing demand for regional manufacturing and logistics capacity.
Tive Real-Time Shipment Tracking Completes $20M Funding Round
Lightsmith Group has finalized a $20 million investment in Tive — a Boston-based company specializing in real-time shipment tracking devices and cloud-based logistics software — bringing its valuation to more than $500 million. The funding highlights growing demand for greater supply chain visibility and operational resilience, as shippers face rising risks from theft, delays, and climate-related disruptions. Increased complexity in perishable goods logistics and the expansion of AI-driven automation are also accelerating adoption of advanced tracking solutions. More broadly, the deal reflects continued investor confidence in logistics technology that strengthens risk management, improves in-transit oversight, and enhances end-to-end supply chain reliability.
