Can the Strength of the U.S.-Mexico Trade Relationship Combat Teeter-Tottering Tariffs?

The ongoing implementation of tariffs has been a large part of the directives issued by the Trump administration since the beginning of 2025. The back and forth has been challenging to keep up with, causing economic disruption for all involved.

From the time of inauguration, and well into April, President Trump has ordered tariffs on steel and automobiles, among other imports from China and Canada, impacting a broad range of goods and trading partners. Most recently, tariffs were applied to fully assembled vehicles as a way to rebuild the manufacturing industry in the U.S.

However, as many industry experts and manufacturers have pointed out, America struggles with finding affordable, trained industrial labor to fulfill the roles left behind by a generation of retired workers. Plus, trying to secure cost-effective factories is also less feasible in the U.S. compared to the site availability in Mexico.

While the intent of bringing manufacturing jobs back to the U.S. may seem promising, the execution is more difficult to deliver on. After all, U.S. and other global companies have relied on manufacturing in Mexico for decades, partly due to the country’s cost-effectiveness.

USMCA Protections Create Economic Opportunity

Additionally, the U.S. and Mexico, along with Canada, are part of a trade agreement, originally enacted during President Trump’s first term, meant to alleviate tariffs and incentivize trade within the North American trade bloc.

President Trump has now exempted Mexico and Canada from tariff application on certain products, including the aforementioned steel, aluminum, and automobiles, as long as they meet the rules of origin requirements listed in the USMCA. However, any goods that do not meet the standards, including those from non-USMCA trade partners, will incur 25% tariffs.

Mexico has already demonstrated its willingness to cooperate with the demands of President Trump to maintain a strong trade relationship with the U.S., which is valuable, as both economies benefit by working together, especially as manufacturers continue to move away from reliance on Chinese manufacturing.

In fact, Mexico became America’s largest trading partner in 2023, proving the collaboration is an integral part of the ongoing success in the automotive, aerospace, electronics, and medical device sectors. Maintaining the strength and stability of this relationship is a strategic advantage as it positions the U.S. and Mexico as one of the most competitive manufacturing regions in the world.

Manufacturing in Mexico with the Support of Shelter Services

With a strong infrastructure, reliable supply chains, and skilled industrial workers, among its many advantages, manufacturing in Mexico has benefited U.S. and other foreign companies for the past several decades and continues to be a strong strategic move for the future.

Furthermore, the presence of shelter services companies gives manufacturers the support they need to get up and running as quickly and efficiently as possible. From site selection to navigating ever-changing trade compliance, working with a shelter company saves manufacturers time, money, and stress by handling all the administrative setup necessary to launch production.

Time will tell the impact of any new tariffs to come, but hopefully, the trade relationship between the U.S. and Mexico will remain strong.

For more information about shelter services or how manufacturing in Mexico may be affected by tariffs, contact IVEMSA today.