Supply Chain Optimization Helps Counter Geopolitical Uncertainty

With the announced 30% tariff on all Mexican products exported to the United States set to take effect on Aug. 1, 2025, Mexican business and political leaders must work together to reduce negative impacts on competitiveness. Creating efficient logistics processes is essential in this effort, according to industry insiders.

It is still unclear whether the US 30% tariff will apply to all goods or USMCA-compliant goods will be exempt. It is also unclear whether these tariffs will materialize, however, business experts suggest leaders to seek efficiencies, particularly in terms of logistics. According to Álvaro Echeverría, Executive Director, Simpli Route, transportation costs can represent over 40% of a Latin American company’s operational costs. 

According to GT+logistics, the imposition of new tariffs has direct effects on logistics in Mexico. Even with the USMCA agreement in place, specific sectors like aluminum, steel, and auto parts remain subject to tariffs, creating measurable impacts. With the application of new duties, goods face more intensive reviews and slower customs processes. This situation generates a cascade of costs, including higher fees for storage, increased fuel consumption due to idling, and delays that tie up capital. Furthermore, companies operating between Mexico and the United States. must reorganize transportation routes to avoid bottlenecks at the border, which complicates planning and creates operational uncertainty. 

GT+logistics notes that the context is forcing companies to rethink their logistical structures. A key trend is a shift in supplier selection, as companies migrate toward regional providers or diversify their sources to reduce dependence on US trade. This directly influences the management of distribution centers in Mexico. Additionally, the volatility in trade policy demands much more agile responsiveness from businesses, as inflexible supply chains are at risk of severe disruptions. 

While the federal government's investment in over 100 new industrial parks signals a clear intent to boost national production and content, a critical gap remains in the connectivity required to support this growth. Experts emphasize that without robust underlying infrastructure, the full potential of nearshoring cannot be realized.

This challenge is detailed by authors José Solleiro and Rosario Castañón in the book titled Nearshoring: The Opportunity for Mexico’s New Economic and Social Development, where they identify transportation and digital infrastructure as the two essential pillars of connectivity. An efficient network of highways, railways, ports, and airports is fundamental to facilitate the movement of goods and people between a company's primary operations and its nearshore location. Authors underscore Mexico's historical infrastructure challenges, referencing the country’s 49th ranking in the World Economic Forum's 2018 Infrastructure Competitiveness Index and its 57th place, out of 160 countries, in the World Bank's 2020 Logistics Performance Index.

Solleiro and Castañón argue that reliable telecommunications and advanced technology are fundamental to the success of nearshoring. Companies require high-speed internet and efficient communication services to maintain a fluid and seamless connection between the teams, systems, and data that integrate the value chain, particularly between a parent company and its nearshoring facilities.

Experts consider projects like the Interoceanic Corridor of the Isthmus of Tehuantepec and the expansion of the national railway network as strategic long-term investments, which should be the government’s priority instead of projects with lower returns. “Instead of focusing on low-return or tourism-centric projects, investment should prioritize railway, port, and industrial infrastructure to generate competitive advantages and integrate southern states with northern industrial hubs and Central America,” Erick González, Consultant, B&T Consulting Mexico, said in an MBN Expert Contributor piece. 

New Markets Bring New Opportunities

While there is no immediate substitute for the high-consumption US market, experts consider market diversification a reasonable choice to reduce exposure to trade tensions. This approach involves strengthening ties with established partners and exploring new growth regions. For example, companies can deepen their integration with Canada, where Mexico is already a top supplier of vehicles and parts, and with the European Union, which was Mexico's second-largest export destination in 2024. Simultaneously, there is a significant opportunity to expand into Latin American markets by leveraging Mexico's manufacturing expertise in sectors like heavy-duty vehicle production to meet growing regional demand. Mexican agricultural producers have even explored Asian markets, which might not demand high-volumes, but are willing to pay competitive prices.  

“It is time to redirect our exports toward new markets or those where Mexico’s presence is still nascent. This requires consolidating best business practices to encourage exploration of high-potential niches and strengthening access channels to new consumers eager for Mexican products,” said Agustín García, CEO and Founder, Wotian Business Group, noting that this is a dual approach, as North America is Mexico’s natural market. 

Follow our MBS 2025 tag and do not miss our coverage leading to Mexico Business Summit 2025 on October 28–29, 2025. On Thursday, July 31, 2025, we will delve into how intermodality could be a game changer for Mexican companies.

Interested in staying ahead in the nearshoring landscape? Mexico Business Summit 2025 offers exclusive insights from leading industry experts and government officials on the key trends, risks, and opportunities fueling Mexico’s emergence as a global nearshoring powerhouse. Discover how supply chain innovations, workforce development, and sustainability strategies can strengthen your competitive edge.

Register now to secure your place and position your business at the forefront of this dynamic market: https://mexicobusiness.events/MBS/2025