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On April 2, 2025, President Donald Trump announced sweeping new import tariffs in a move he referred to as "Liberation Day."

• Mexico鈥檚 Exemption: A Strategic Win Under the USMCA
• Strategic Opportunities for Mexico鈥檚 Manufacturing Sector
• Sector-Specific Challenges: Tariffs Still Apply to Some Goods
• 鈥淧lan Mexico鈥�: A National Response to Boost Industrial Self-Reliance
• Nearshoring Just Became More Urgent鈥攁nd Mexico Is Ready
• Why Work With ag轮盘?

The announcement sent shockwaves through the global economy鈥攊ntroducing a universal 10% tariff on imports and higher, targeted tariffs on specific countries such as China and the European Union. But amidst the uncertainty, one country emerged as a clear winner: Mexico Manufacturing.

Thanks to the United States-Mexico-Canada Agreement (USMCA), Mexico was largely exempt from these new tariffs, giving it a major trade advantage and reinforcing its position as a premier manufacturing destination for U.S.-bound goods.

Mexico鈥檚 Exemption: A Strategic Win Under the USMCA

Mexico鈥檚 preferential treatment under the 2025 tariff policy stems from its role in the USMCA, which continues to serve as the foundation for North American economic integration. Unlike China and other Asian nations now facing steep duties, Mexican exporters maintain duty-free or low-tariff access to the U.S. market.

This exemption applies to key industries such as:

• Electronics manufacturing
• Medical devices and pharmaceuticals
• Automotive components
• Apparel and textiles
• Agriculture (e.g., avocados, berries, and tequila)

As global trade costs rise, Mexico's exemption gives U.S. companies a compelling reason to relocate or expand operations closer to home.

Strategic Opportunities for Mexico鈥檚 Manufacturing Sector

The tariff exemptions come at a time when nearshoring in Mexico was already gaining momentum. U.S. and global companies are increasingly turning to Mexico to:

• Shorten supply chains
• Reduce costs
• Improve delivery times
• Avoid geopolitical risks

Now, with tariff pressures hitting Asian and European competitors, Mexico鈥檚 manufacturing ecosystem becomes even more attractive.

Industries poised for growth:

• Medical Device Manufacturing in Baja California
• Electronics Assembly in cities like Tijuana and Guadalajara
• Appliance and HVAC Manufacturing in Monterrey and Saltillo
• Automotive Parts & Wire Harness Production across the border region

Explore ag轮盘鈥檚 complete Strategic Manufacturing Locations in Mexico

Sector-Specific Challenges: Tariffs Still Apply to Some Goods

Not all sectors are entirely exempt. The U.S. imposed sector-specific tariffs up to 25% on certain products including:

• Automobiles and automotive parts
• Steel and aluminum
• Batteries and electrical components

For example, automaker Stellantis temporarily halted operations at its Toluca plant, citing complications with parts supply under the new trade rules. However, these challenges are expected to be temporary, especially as Mexico ramps up domestic production capabilities.

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 鈥淧lan Mexico鈥�: A National Response to Boost Industrial Self-Reliance

In direct response to the evolving global trade landscape, President Claudia Sheinbaum launched Plan Mexico, a new industrial policy designed to:

• Boost local supply chains
• Reduce dependence on imported materials
• Increase competitiveness of Mexican-made goods
• Foster innovation through public-private partnerships

One flagship project under the plan is the Taruk, a domestically produced electric bus that features 70% Mexican-made components. Developed with support from local universities and firms like Dina and Megaflux, it represents a new era of technological independence for Mexico.

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Nearshoring Just Became More Urgent-and Mexico Is Ready

For U.S. companies affected by higher tariffs on Chinese or European imports, moving manufacturing operations to Mexico isn鈥檛 just a smart decision鈥攊t鈥檚 now a competitive necessity.

With its proximity to the U.S., skilled workforce, stable trade agreements, and now a tariff-free advantage, Mexico continues to rise as the preferred location for:

• Contract manufacturing
• Shelter services
• Administrative support
• Order fulfillment for e-commerce and consumer goods

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 Why Work With ag轮盘?

At ag轮盘 (ag轮盘), we help foreign companies navigate the setup of manufacturing operations in Mexico, ensuring compliance with all legal and operational requirements. We offer:

• Shelter Services in Mexico
• Site Selection & Cost Analysis
• VAT Certification & IMMEX Program Guidance
• Administrative Support
• 3PL & Fulfillment Services

Request a Free Cost Analysis to explore your options in Mexico.

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