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How Recent Tariffs Impact Manufacturing in Mexico

Updated: Jun 4

A pin in Mexico on a wooden map.

Here at Javid, we understand the complexities of manufacturing in Mexico. Recent trade developments, including the United States' tariffs on Chinese goods and Mexico's subsequent tariffs, add another layer to this ever-evolving environment.

The new tariffs target a wide range of specific materials, including aero, aluminum, and textiles – all commonly used materials in manufacturing. The issue extends beyond where you source these materials; even if you purchase them from the US, there's a catch: if they originally came from China, they might still be subject to the Mexican tariffs since Mexico has imposed its tariffs on the specific products, irrespective of their country of origin. This can impact production costs for finished goods.

These tariffs have the potential to disrupt established supply chains, leading to a domino effect that could impact your bottom line and production timelines. Imported materials become more expensive, squeezing your profit margins. Trade restrictions can limit the availability of specific materials, causing production delays. Difficulty securing materials can further slowdownmanufacturing processes, impacting your ability to meet deadlines.

While navigating the world of tariffs and trade regulations can feel like a maze, Javid is here to do the work for you. We closely monitor trade developments and understand the implications for our clients. Here's how we can help you navigate this complex landscape:

• Tariff expertise: We stay up-to-date on the latest tariffs and their potential impact on your specific products. We translate complex regulations into actionable insights for your business, ensuring you understand how these changes might affect your production costs and overall strategy.

• Alternative sourcing: We can help identify products that would benefit from alternative sourcing or suppliers not affected by the tariffs, ensuring a smooth flow of production and minimizing disruptions to your business.

• Special import initiatives: Working with a shelter company has many benefits, and one of them is that we can apply a variety of potential benefits from Mexican programs to your operations. Programs like IMMEX and PROSEC have the ability to offset tariffs and substantially lower your costs. 

Javid's proactive approach keeps you ahead of the curve. We work with you to develop strategies that minimize the impact of tariffs and ensure your continued success in manufacturing in Mexico.



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