Impact of New U.S. tariffs on Mexico and Latin America (2025)

Tariffs imposed in President Donald Trump's second term, have created a challenging but opportunity-filled environment. While Mexico faces mixed impacts, the rest of the region can reposition itself as a strategic alternative to the Asian supply chain for the global market.

Mexico, although partially covered by the T-MEC, has been impacted by additional tariffs on automobile components, metals and electronics. On the other hand, Central America feels the blow in manufacturing and maquila and South America sees its agro-exports and industrial minerals affected.

The key for Procurement teams is to anticipate, diversify, strengthen regionalization and design smart contracts with suppliers to align the strategy with the new tariff environment.

If you would like to discuss how to structure your sourcing strategy in this new tariff context, I would be happy to share ideas.

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