Mexico Manufacturing Solutions Provide Stability During Tariff Uncertainty
10.30.25Summary Overview: Tariffs continue to challenge the manufacturing industry, though Mexico provides several advantages that may help lessen the impact on business. With U.S. and other foreign companies already seeking alternatives to manufacturing in China, eyes are on Mexico to provide some much-needed solutions.
Tariffs continue to be top of mind, with a flurry of changes causing waves of uncertainty for global companies manufacturing in Mexico. Industry leaders are no strangers to unexpected shifts, yet seek clarity on whether their production efforts will be impacted long-term.
Ongoing negotiations are in effect, but here is what to know about current tariff policies, which goods are exempt, and how a Mexico shelter company can help you navigate potential disruptions to your business.
Which Mexican Imports Are Most Affected
Tariffs and counter-tariffs have affected multiple countries that trade with the U.S. For Mexico, in particular, the U.S. has enacted tariffs on certain Mexican imports, primarily focused on automotive components and electronics.
Initially, the Trump administration imposed 25% tariffs on steel and aluminum imports from all countries and then doubled these duties to 50%. Mexico is not exempt from these tariffs, although goods compliant with the USMCA are.
Avoiding Tariffs Through USMCA Approval
Qualifying goods under USMCA provisions lessens the impact, though it requires accurate management and detailed product descriptions to compare to the rules of origin.
The origin of raw materials and the amount of processing affect whether or not they will qualify for exemption from tariffs. Materials must have undergone a substantial transformation from the raw materials before being exported.
Having the expertise of a Mexico shelter company that works closely with U.S. customs brokers plays a vital role in reviewing a manufacturer’s Bill of Materials (BOM) and Harmonized Tariff Schedule (HTS) codes to confirm which goods qualify.
Easing Uncertainty with Mexico Manufacturing Solutions
Tariff shifts lead to other costly impacts, including disruption to supply chains and an increase in expenses for certain components. Ultimately, this affects profit margins and investment decisions.
However, companies manufacturing in Mexico have certain benefits those manufacturing in other parts of the world, such as China, do not.
Geographical Proximity: The proximity between the U.S. and Mexico reduces transportation costs and timeline delays typically experienced in trade with China.
Cost-Effective, Industrially Skilled Labor: Mexico continues to invest in its industrial workforce through education and training programs to meet diverse, technical demands. Furthermore, the cost-effectiveness and availability of qualified labor compared to the U.S. have driven continuous opportunities for expansion.
Established Infrastructure: Mexico manufacturing solutions include industrial clusters well-equipped with access to multiple transportation networks and supply chains to fulfill growing production needs.
Favorable Trade Agreement: In addition to tariff exemptions allowed through the USMCA, there are additional incentives and intellectual property protections for original content for U.S. manufacturers.
Shelter Company Expertise: Partnering with a Mexico shelter company provides a unique advantage for U.S. and other foreign manufacturers. It’s the safest way to do business and reduces the learning curve of operating in a foreign country. Despite tariff uncertainty, implementing shelter services helps make the transition to manufacturing in Mexico more seamless.
Finding a Sense of Stability with Shelter Services
No country is immune to the effects of tariffs. However, manufacturing in Mexico has thrived for decades and maintains a solid infrastructure that companies can rely on as an alternative to China when they want to diversify or expand their production.
Mexico manufacturing solutions ease tariff uncertainty for U.S. manufacturers due to specific tariff exemptions, geographical and cost-saving advantages, and the industry support of a shelter company.
Additionally, there is setup support available through shelter services to streamline efforts and save on production costs.
Contact IVEMSA to learn how this solution can benefit you.
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