What It Means for Nearshoring in Mexico

As the 2024 U.S. Presidential election approaches, the implications of Donald Trump’s potential re-election on Mexico’s investment landscape come into sharp focus. This analysis explores how Trump's proposed protectionist policies, particularly the introduction of a 10% universal tariff on imports, may reshape the dynamics of nearshoring in Mexico. The article highlights the risks of increased operational costs and investor uncertainty that could deter foreign investment. Furthermore, it examines the broader geopolitical landscape, including the upcoming USMCA review and the evolving relationship between Mexico and the United States under new leadership. As businesses weigh their options in this complex environment, understanding these factors is crucial for navigating the potential challenges and opportunities ahead.