USMCA Protections Keep Manufacturing in Mexico on a Positive Path

Tariffs have dominated the manufacturing conversation since the new U.S. administration took office in January. The back-and-forth declarations regarding when and how tariffs would be implemented have left many companies unsure whether a manufacturing in Mexico strategy is ideal in 2025.

However, as of April, it seems a resolution has been reached, at least for goods compliant with USMCA standards, which will “continue to see 0% tariffs,” per the Trump administration. After all, the USMCA remains the official trade document between the U.S., Canada, and Mexico and was initially implemented by President Trump during his first term.

Now, the focus has heavily shifted toward imposing tariffs on Asia, with the proposed trade policy specifically affecting Chinese companies trying to circumvent duties to reach the U.S. market, similar to tariffs imposed in 2018.

Therefore, despite tariff uncertainty, manufacturing in Mexico has largely been business as usual. Though companies new to nearshoring are leaning on shelter services companies to help them analyze if their products qualify for USMCA protections and searching for guidance on what to do if they don’t.

How to Know If Products Are USMCA-Compliant

U.S. trade regulations require manufacturers to follow the Harmonized Tariff Schedule (HTS). This official classification system tracks imports into the U.S. to determine duty rates.

If a product doesn’t qualify as USMCA-compliant, manufacturers must find a way to make adjustments to avoid tariffs. It is a technical, time-consuming process that benefits from the expertise of a shelter company.

A shelter services company has experienced customs specialists who help manufacturers alleviate stress and maximize the cost benefits of the USMCA. Among the Mexico trade compliance services IVEMSA provides are:

• Daily traffic and customs operations
• Administration of Mexican customs software for compliance
• Preparation of customs documentation reported to U.S. and Mexican brokers
• Data recording of all raw materials, machinery, and equipment needed for production

This is in addition to securing all permits and certifications foreign manufacturers need to operate in Mexico, including IMMEX program and VAT certification approval, which offers a 16% tax savings benefit.

Strength of Global Trade Thanks to Manufacturing in Mexico

Though President Trump has said tariffs are a way to bring manufacturing jobs back to the U.S., it is a less cost-effective and accessible solution.

Shelter manufacturing has historically benefited the U.S. economy as global companies in various sectors have expanded their production throughout the decades. The industrial labor rate and skilled availability gap between Mexico and the U.S. is substantial.

For instance, a fully burdened salary for a skilled worker in Mexico is $7.80/hour compared to $25/hour in the U.S., plus benefits. Additionally, because of America’s technical skills gap, it’s been reported that approximately 1.9 million manufacturing jobs could remain vacant through 2033.

The majority of U.S. manufacturers claim their biggest business challenge is attracting and retaining talent. Even if a boost in manufacturing jobs in the U.S. becomes available, the cost savings and quality of labor could be limited.

Moving Forward with Mexico Shelter Manufacturing

Mexico shelter manufacturing remains a strategic way for U.S. and other foreign companies to save costs and optimize production. A shelter services partner can assist with providing a labor cost analysis and determining USMCA product qualifications to ensure manufacturers reap the benefits and streamline the setup process.

For information about customs compliance and cost savings of working with a shelter services provider, contact IVEMSA today.

Sources:
https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/
https://apnews.com/article/mexico-us-tariffs-trump-stellantis-90a6964f4386f8a002b3f46a16c0f221
https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/us-manufacturing-could-need-new-employees-by-2033.html
https://www.investopedia.com/why-half-of-the-new-us-manufacturing-jobs-in-the-next-decade-could-go-unfilled-8627559