Border Economics: The 25% Toll on Nearshoring

The U.S. has imposed a 25% tariff on Mexican imports, aiming to pressure Mexico to curb migration and drug trafficking. Despite last-minute efforts, including deploying troops and extraditing criminals, Mexico failed to prevent the tariffs and is now considering retaliation. The tariffs threaten North America’s supply chains, particularly in the auto and electronics industries, and could impact Mexico’s nearshoring boom.