Mexico Supply Chains: Competing Under Tariffs and USMCA

What if US tariffs on Mexican imports increase by 5-10%?

Simulate the impact of a 5-10% tariff increase on goods sourced from Mexico across automotive, electronics, and apparel sectors. Model the effect on landed costs, supplier profitability, potential price pass-through to customers, and demand shifts if prices rise. Evaluate inventory buildup strategies before tariff implementation and sourcing diversification scenarios.

What if USMCA rule-of-origin compliance costs increase supplier prices by 3-7%?

Model the supply chain impact of increased USMCA compliance costs (e.g., higher labor audits, more domestic content requirements, enhanced documentation). Simulate how supplier cost increases propagate through procurement, evaluate sourcing alternatives (nearshoring, reshoring), and assess competitiveness vs. non-USMCA suppliers.

What if Mexican production capacity shifts due to tariff-driven nearshoring?

Simulate shifts in supplier availability and lead times if companies nearshore production away from Mexico to avoid tariffs. Model capacity tightness at remaining suppliers, potential supplier consolidation, lead time increases, and the need to identify alternative suppliers or geographic sources. Assess inventory and safety stock adjustments needed.