Tariffs Spark Nearshoring Boom in Mexico as Companies Rethink Supply Chains
Summary
A recent panel discussion at the Houston International Maritime Conference (HIMC25) highlighted the impact of ongoing US tariff policy changes on cross-border trucking and trade. Logistics and trade executives from Igloo, IKEA, and DSV revealed that tariffs are forcing companies to rethink their sourcing strategies, pricing models, and long-term supply chain planning. The panelists emphasized the difficulties in managing tariff-related costs, which are affecting many industries, including automotive and consumer goods.
Tariffs Forcing Nearshoring, Regional Sourcing, Experts Say
HOUSTON — At the 4th annual Houston International Maritime Conference (HIMC25), logistics and trade executives gathered to discuss the ongoing shifts in US tariff policy. The panel "The Tariff Effect: Rethinking Sourcing, Manufacturing, and Infrastructure in an Evolving Trade Landscape" featured representatives from Igloo, IKEA, DSV, and the National Retail Federation (NRF). Panel moderator Jonathan Gold, NRF’s vice president of supply chain and customs policy, opened the discussion by highlighting that "a tariff is a tax paid by the US importer."
Gold emphasized that tariffs can be volatile and unpredictable, making it challenging for companies to plan and prepare for changes. The panelists described managing tariffs as a constant challenge for customs teams and brokers due to rapidly changing rules and regulations. Pete Mento, director of customs and international trade at DSV, noted that the stream of reclassifications, regulatory reviews, and pricing recalculations created "a never-ending" workload.
Mento stressed the importance of developing a strong relationship between importers and their customs brokers. He warned that companies should not underestimate the value of their brokers in navigating the complexities of tariff management. Cris Borzani, Igloo’s international logistics and compliance manager, echoed Mento’s sentiments, stating that the constant changes in tariffs make it difficult to communicate with leadership.
Borzani shared an example of writing emails with updated tariff information only for it to change mid-sentence. Christopher Smith, who leads customs and trade advisory efforts for IKEA North America, highlighted the legacy system limitations in managing layered tariffs. He emphasized the need for companies to adjust their strategies and explore nearshoring options.
Panelists said that many companies have spent years absorbing tariff costs instead of passing them on to customers. However, these strategies are being exhausted due to persistent disruptions. Smith stated that IKEA is projecting over $400 million in additional tariff-related costs this year alone in the US market. He also mentioned potential shifts in sourcing from Asia to Europe following the recent U.S.-European trade agreement.
Mento noted that the U.S. government’s trade policies aim to economically isolate China and promote North American regional manufacturing under the USMCA. However, shifting sourcing is a time-consuming process due to labor capacity, component availability, and transportation infrastructure in Southeast Asia often lagging behind China’s capabilities.
Mexico is emerging as the strongest nearshoring winner, with Chinese manufacturers themselves opening new factories there to maintain access to the U.S. market. Mento described Mexico’s industrial growth as "like a weed." The panelists also warned that U.S. Customs and Border Protection (CBP) is increasing its AI-driven enforcement efforts, including automated audits and transaction reviews.
CBP has started naming companies found to be in violation in Federal Register notices, which raises the stakes for Delivered Duty Paid (DDP) arrangements with suppliers. The panelists emphasized the importance of trade compliance due to CBP’s new focus on reducing liability. Kuehne+Nagel Expands Cross-Border Logistics Capacity in El Paso
Kuehne+Nagel, a leading 3PL company, expanded its cross-border logistics footprint in El Paso, Texas, by building a 217,431-square-foot facility next to its existing site. The new bonded warehouse includes 53 dock doors and 65 trailer spaces, providing increased northbound and southbound freight volumes in response to ongoing nearshoring-driven demand.
Motherson Invests $50 Million in Mexico Plant for Audi Components
India-based auto parts supplier Motherson Group has invested $50 million to expand its plant in Zitlaltepec, Tlaxcala, Mexico. The expansion will produce components for Audi’s Q5 and EQ7 models, including a new paint area and six injection molding machines.
Construction is expected to be completed between April and July 2026. State officials anticipate that the investment will boost regional manufacturing capacity and support local employment. The project will create 150 direct jobs and 300 indirect jobs with recruitment beginning in the second quarter of 2026 through job fairs and digital platforms.
Conclusion
The recent panel discussion at HIMC25 highlighted the significant challenges faced by companies due to ongoing changes in US tariff policy. The participants emphasized that shifting sourcing, nearshoring, and regional strategies are increasingly important as companies navigate the evolving trade landscape.
Tariffs Spark Nearshoring Boom in Mexico as Companies Rethink Supply Chains
Summary
A recent panel discussion at the Houston International Maritime Conference (HIMC25) highlighted the impact of ongoing US tariff policy changes on cross-border trucking and trade. Logistics and trade executives from Igloo, IKEA, and DSV revealed that tariffs are forcing companies to rethink their sourcing strategies, pricing models, and long-term supply chain planning. The panelists emphasized the difficulties in managing tariff-related costs, which are affecting many industries, including automotive and consumer goods.
Tariffs Forcing Nearshoring, Regional Sourcing, Experts Say
HOUSTON — At the 4th annual Houston International Maritime Conference (HIMC25), logistics and trade executives gathered to discuss the ongoing shifts in US tariff policy. The panel "The Tariff Effect: Rethinking Sourcing, Manufacturing, and Infrastructure in an Evolving Trade Landscape" featured representatives from Igloo, IKEA, DSV, and the National Retail Federation (NRF). Panel moderator Jonathan Gold, NRF’s vice president of supply chain and customs policy, opened the discussion by highlighting that "a tariff is a tax paid by the US importer."
Gold emphasized that tariffs can be volatile and unpredictable, making it challenging for companies to plan and prepare for changes. The panelists described managing tariffs as a constant challenge for customs teams and brokers due to rapidly changing rules and regulations. Pete Mento, director of customs and international trade at DSV, noted that the stream of reclassifications, regulatory reviews, and pricing recalculations created "a never-ending" workload.
Mento stressed the importance of developing a strong relationship between importers and their customs brokers. He warned that companies should not underestimate the value of their brokers in navigating the complexities of tariff management. Cris Borzani, Igloo’s international logistics and compliance manager, echoed Mento’s sentiments, stating that the constant changes in tariffs make it difficult to communicate with leadership.
Borzani shared an example of writing emails with updated tariff information only for it to change mid-sentence. Christopher Smith, who leads customs and trade advisory efforts for IKEA North America, highlighted the legacy system limitations in managing layered tariffs. He emphasized the need for companies to adjust their strategies and explore nearshoring options.
Panelists said that many companies have spent years absorbing tariff costs instead of passing them on to customers. However, these strategies are being exhausted due to persistent disruptions. Smith stated that IKEA is projecting over $400 million in additional tariff-related costs this year alone in the US market. He also mentioned potential shifts in sourcing from Asia to Europe following the recent U.S.-European trade agreement.
Mento noted that the U.S. government’s trade policies aim to economically isolate China and promote North American regional manufacturing under the USMCA. However, shifting sourcing is a time-consuming process due to labor capacity, component availability, and transportation infrastructure in Southeast Asia often lagging behind China’s capabilities.
Mexico is emerging as the strongest nearshoring winner, with Chinese manufacturers themselves opening new factories there to maintain access to the U.S. market. Mento described Mexico’s industrial growth as "like a weed." The panelists also warned that U.S. Customs and Border Protection (CBP) is increasing its AI-driven enforcement efforts, including automated audits and transaction reviews.
CBP has started naming companies found to be in violation in Federal Register notices, which raises the stakes for Delivered Duty Paid (DDP) arrangements with suppliers. The panelists emphasized the importance of trade compliance due to CBP’s new focus on reducing liability. Kuehne+Nagel Expands Cross-Border Logistics Capacity in El Paso
Kuehne+Nagel, a leading 3PL company, expanded its cross-border logistics footprint in El Paso, Texas, by building a 217,431-square-foot facility next to its existing site. The new bonded warehouse includes 53 dock doors and 65 trailer spaces, providing increased northbound and southbound freight volumes in response to ongoing nearshoring-driven demand.
Motherson Invests $50 Million in Mexico Plant for Audi Components
India-based auto parts supplier Motherson Group has invested $50 million to expand its plant in Zitlaltepec, Tlaxcala, Mexico. The expansion will produce components for Audi’s Q5 and EQ7 models, including a new paint area and six injection molding machines.
Construction is expected to be completed between April and July 2026. State officials anticipate that the investment will boost regional manufacturing capacity and support local employment. The project will create 150 direct jobs and 300 indirect jobs with recruitment beginning in the second quarter of 2026 through job fairs and digital platforms.
Conclusion
The recent panel discussion at HIMC25 highlighted the significant challenges faced by companies due to ongoing changes in US tariff policy. The participants emphasized that shifting sourcing, nearshoring, and regional strategies are increasingly important as companies navigate the evolving trade landscape.