Is nearshoring in Mexico at risk due to U.S. tariffs?

Nearshoring to Mexico continues to progress despite announcements of tariff impositions by the United States, with no noticeable effects from the measure aimed at limiting the entry of technology developed in Asia, under the argument of national security.

So far, it has not been a factor hindering the relocation of companies to Mexican territory, as evidenced by reports from consulting firms and risk rating agencies. Fitch Ratings, according to Bloomberg, predicts an increase in the price of industrial rental spaces.

Mexican nearshoring and logistics: growing together
The issue of space availability mainly affects industries with evolving needs, such as logistics, which demands greater dynamism due to the growth of e-commerce.

This type of activity, although also exposed to the effects of U.S. measures, often operates with a more regional dynamic and continues uninterrupted.

Suppliers from Asia, Europe, and other countries with trade agreements with Mexico maintain their activity unchanged, in a context where, since 2020, the demand for services has been increasing.

Thus, Obras por Expansión highlights that the lack of space is a challenge for the sector in its efforts to sustain growth in urban centers.

The publication cites a study by Mordor Intelligence that values the Mexican last-mile delivery market (the most affected aspect) at approximately $15.5 billion. It forecasts a compound annual growth rate (CAGR) of more than 6.5% in the coming years.

Considering that logistics, alongside the automotive and manufacturing sectors, is one of the industrial activities that has grown the most as a result of nearshoring, it is expected to serve as a support point to mitigate the effects of U.S. tariff policies.

Various global companies in the automotive sector have reacted to the announcement of tariffs on Mexican exports to the United States, requesting that the implementation be postponed to allow time for supply chain reconfiguration.

However, the full impact of the measure on the industries that could be most affected has yet to be seen.

Nearshoring in Mexico and the impact of U.S. tariffs

• The need to reconfigure supply chains in the automotive industry.
  
  
• The search for new suppliers that meet legal standards for exporting to the U.S. market.
  
  
• Redesign of components to meet the requirements of automakers.
  
  
• Increases in production costs and the final product price.
  
  
• Delays in production times.

Recently, representatives from the Northeast Mexican Foreign Trade Council (COMCE) stated that they expect a significant economic impact, as the automotive industry is among the main exporters to the United States. In terms of customs and trade exchange, Mexico is highly dependent on that market.

For the country, diversifying export destinations and strengthening various industries, such as logistics, represent a way to mitigate the impact that the implementation of tariffs could have. In this scenario, the availability of spaces for such activities is crucial.

At Frontier Industrial, we are aware of the requirements and dynamics of the Mexican industrial market. We offer industrial land for sale, industrial warehouses for rent, and Build-to-Suit (BTS) project development tailored to the needs of companies opting for nearshoring in Mexico.

If this applies to your company, do not hesitate to contact us and learn about the portfolio of options we can offer you in the most important industrial zones in the country.