The International Container Terminal Services Inc. (ICTSI) anticipates limited impact from U.S. President Donald Trump’s sweeping new tariff regime, citing the company’s diversified global footprint, though it flagged its Manzanillo terminal in Mexico as a potential area of concern.
“It is too early to tell the impact since Trump is flip-flopping every day,” said ICTSI chairman and president Enrique K. Razon Jr. at the firm’s virtual stockholders’ meeting. “Our operations are very diverse. The only major impact that could be possible would be [on our] Manzanillo terminal in Mexico. But, so far it is still a wait and see.”
Trump’s “Liberation Day” proclamation, signed 2 April 2025, imposes a blanket 10 percent minimum tariff on all U.S. imports, with elevated duties on goods from 57 countries—part of the administration’s broader effort to boost domestic manufacturing. While markets have responded with volatility, ICTSI’s exposure remains low, with trade involving the U.S. accounting for just 3 percent of its global operations.
Razon added that the massive industrial capacity of China, one of the main targets of the tariffs, could shift its export strategies to other markets, potentially offsetting any downstream disruptions in trade volume.
Despite the geopolitical uncertainty, ICTSI reported strong financial performance for 2024, with net income soaring 66 percent to USD849.8 million, up from USD511.5 million the year prior. The surge was boosted by a one-time gain from the settlement of legal claims at its Oregon operations and the deconsolidation of its Jakarta terminal, PT PBM Olah Jasa Andal (OJA). Stripping out these nonrecurring items, underlying net income still rose a solid 23 percent to USD830.9 million.
Looking ahead, ICTSI has earmarked approximately USD580 million in capital expenditures for 2025, up from USD517.1 million in 2024. Funds will support ongoing expansion in key terminals, including the third phase of the Manzanillo site in Mexico, projects in Batangas and Manila in the Philippines, and infrastructure upgrades in Brazil and the Democratic Republic of Congo.
ICTSI’s measured response highlights how global logistics operators are navigating policy headwinds by leaning on geographic diversity and long-term infrastructure investments, even as protectionist measures continue to ripple across international trade lanes.
