Monterrey's Nearshoring Industrial Chinatowns

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industrial Chinatowns

CNN

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An industrial Chinatown near the US southern border readies its options should Trump tariffs come

Summary

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76% Informative

Many Chinese companies are moving production to Mexico to have tariff-free access to the US market under the USMCA trade deal.

President-elect Donald Trump is now threatening to impose tariffs on Mexico and other countries.

Many of the growth owes to the phenomenon of nearshoring’ in Mexico .

Mexican workers say they look to Trump as a successful businessman who would likely do what makes sense financially and not do anything to hurt the American economy.

Economists and CEOs say it’s American consumers that will pay for tariffs as companies pass on the costs through increased prices.

At the Kuka Home factory in Monterrey the assembly lines are mostly Mexican , while bosses are Chinese , breaking down to about 95% local.

Mexico has experienced record-breaking investment in industrial and commercial construction.

In 2023 , it also surpassed China to become the leading exporter to the US .

Mexico has done well as a business partner for both China and the US but might now be at a crossroads.

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Article tone

informal

Language

English