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April 13, 2026

Nearshoring to Mexico: The Political Rewiring of Global Supply Chains

This infographic examines how U.S.–China trade tensions have reshaped global supply chains and contributed to the rise of nearshoring to Mexico. Since 2018, tariffs on Chinese imports and disruptions during the COVID-19 pandemic have increased the costs and risks of relying on China-centered production. In response, firms have adjusted their strategies by shifting parts of production closer to the United States, particularly to Mexico, which offers geographic proximity and tariff-free access under the USMCA. Trade data shows a clear shift in patterns, with Mexico becoming the United States’ largest trading partner and total trade levels reaching historically high levels. However, this transformation is not uniform. Firms are selectively relocating labor-intensive and time-sensitive stages of production, such as final assembly and logistics, while maintaining more complex manufacturing and supplier networks in Asia. At the same time, structural constraints in Mexico, including infrastructure limitations, labor shortages, and border congestion, limit the scale of nearshoring. Overall, the infographic demonstrates that global trade is not declining but being reorganized, as firms balance efficiency, risk, and geopolitical pressures across regions.

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Alfonsina Aldama

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