To relocate or not to relocate? Manufacturers are uncertain about nearshoring until the review of the USMCA is complete.

As the U.S. reviews the U.S.-Mexico-Canada Agreement (USMCA) next year, manufacturers are seeking ways to reduce tariff exposure, especially after recent increases on non-compliant goods from Canada and Mexico. While the tariff exemption for USMCA-compliant products has prompted some companies to reassess their manufacturing strategies, many remain hesitant to make significant changes until the agreement is finalized. Experts emphasize the importance of compliance to avoid tariffs, but the fluid trade environment complicates decision-making, leaving manufacturers cautious about investments in both the U.S. and Mexico.