HomeSchools and FacultiesFaculty of EngineeringNearshoring in Mexico: opportunities, challenges, and the impact of new US tariffs

Nearshoring in Mexico: opportunities, challenges, and the impact of new U.S. tariffs

Aguascalientes, July 23, 2025. The phenomenon of nearshoring in Mexico has turned the country into a strategic destination for foreign direct investment, especially by companies seeking to bring their production closer to the U.S. market. However, the recent application of 25% tariffs by the U.S. government presents new challenges for this economic model.

Why is Mexico key to nearshoring?

Rocío Guadalupe Márquez Martínez, director of the Industrial Engineering degree program at the Universidad Panamericana in Aguascalientes, explains that nearshoring  has gained momentum in recent years as a key strategy for companies to reduce costs and time by moving their production closer to their main consumer markets and not relying on distant suppliers

Companies can ensure more agile and secure operations, especially in the wake of the global logistics crisis triggered by the pandemic.

In this context, Mexico has stood out thanks to several advantages:

  • Free trade agreements, such as the USMCA, which facilitate trade with North America.
  • Skilled and competitive workforce, with highly trained engineers and operators at lower costs than in the United States.
  • Privileged geographical location, allowing for efficient logistics by road, rail, and seaports.
  • Growing infrastructure, as seen in key industrial regions of the country, including Aguascalientes.

According to Rocío Márquez, the sectors that benefit most from nearshoring are the automotive, electronics, and advanced manufacturing industries. "The rise of Chinese brands in Mexico is a clear example of how our country has become the gateway to the United States for many companies, " she says.

What will happen to nearshoring in light of the new tariffs?

Faced with 25% tariffs on products manufactured in Mexico and exported to the United States, Ms. Márquez believes that, although this could represent an increase in costs, Mexico will remain competitive

Even with tariffs, producing in Mexico is cheaper thanks to our labor costs, infrastructure, and manufacturing expertise. The industry will have to reevaluate costs, but many companies will conclude that staying here is still the best option," he says.

He also warns of the need for Mexico to negotiate intelligently: "It is important to negotiate conditions that truly benefit the country: decent employment, local economic benefits, and the development of national talent," he says.

The role of education in the success of nearshoring

To sustain the growth of nearshoring, universities play a fundamental role in training professionals capable of leading these processes. 

At the Universidad Panamericana, for example, the curriculum for the Bachelor's Degree in Industrial Engineering has been updated to respond to the needs of industry, including subjects such as data analysis, project management, and global supply chain management.

The key is to train our students to think big and not be afraid to lead," says Márquez, who encourages young people to break paradigms about engineering careers and actively participate in this historic moment for Mexico.

Mexico as a powerhouse

During an academic visit to MIT, Ms. Márquez heard a phrase that still resonates with her: "Mexico has everything it needs to be a world power, and they are not taking advantage of it."

For her, nearshoring is a real opportunity to change that perception: "We have the location, resources, talent, and desire to work. We just need to believe in ourselves, plan well, and seize this moment.".

Faced with tariff and geopolitical challenges, Mexico must consolidate its position as a reliable partner, strengthen its productive capacity, and continue investing in higher education, infrastructure, and technological development.

In a dynamic and challenging economic environment, Universidad Panamericana its commitment to training professionals capable of driving and transforming Mexico into a key player in global industry. 

Learn more about Panamericana's educational model at: https://www.up.edu.mx/sobre-la-universidad-modelo-educativo/