Nearshoring 101 Guide: How Tariffs Are Impacting Business & How Nearshoring Helps

Tariffs are no longer just a trade policy issue—they're a direct cost factor affecting your bottom line. Whether you're in manufacturing, tech, or logistics, businesses across sectors are grappling with rising expenses from international tariffs, inflation, and global instability.

But smart companies aren’t just absorbing the impact—they’re adapting. One of the most strategic shifts we’re seeing right now? Nearshoring. For companies like those we work with at Amalga Group, nearshoring has become more than a trend—it’s a solution to protect margins, improve operations, and stay competitive in a volatile global market.

The Real Cost of Tariffs on Global Businesses

Tariffs have surged between the U.S. and key trading partners like China, the EU, and others. This has created a ripple effect across global supply chains:

• Higher costs on imported goods: Tariffs on electronics, machinery, automotive parts, and textiles have driven up the cost of components and finished products.
• Longer lead times: Customs delays and increased regulation are slowing supply chains.
• Increased financial risk: Companies reliant on international suppliers are exposed to fluctuating policy decisions.

Combined with rising fuel costs, labor shortages, and inflation, many businesses are finding that traditional offshoring is no longer delivering the cost savings it once promised.

Why Nearshoring is Gaining Momentum

Nearshoring—moving operations or suppliers to a nearby country—has emerged as a practical, cost-effective alternative to offshoring. For U.S. companies, this often means shifting manufacturing and service operations to Mexico, Central America, or Latin America.

Here’s why it’s working:

1. Tariff Mitigation

By moving operations to countries with favorable trade agreements like the USMCA (United States-Mexico-Canada Agreement), companies can significantly reduce or eliminate tariffs on goods crossing borders.

2. Reduced Shipping Costs & Faster Turnaround

Shorter distances mean lower transportation costs, fewer delays, and more responsive production timelines.

3. Improved Communication & Time Zone Alignment

Working in a shared or nearby time zone means better real-time collaboration and reduced project lag, especially in software development, customer support, and operations.

4. Better Quality Control

Nearshoring makes it easier to visit facilities, audit suppliers, and ensure quality standards are met without long-haul international travel.

5. Increased Supply Chain Resilience

Recent events—from pandemics to port closures—have shown how vulnerable long global supply chains can be. Nearshoring adds a layer of flexibility and control.

Real-World Impact: Companies Are Making the Shift

Many companies that partner with us at Amalga Group are exploring nearshoring not just as a backup plan—but as a core growth strategy. They’re using it to:

• Cut labor costs while maintaining or improving service quality.
• Diversify their supply base to mitigate geopolitical risk.
• Scale operations faster in a more stable, cost-efficient environment.

Is Nearshoring Right for You?

Not every business is ready for nearshoring overnight, but if your costs are rising and your operations are stretched thin, it's time to explore it. A few indicators that nearshoring might be right:

• You're seeing consistent delays or cost overruns from overseas partners.
• Tariffs are directly impacting your COGS (Cost of Goods Sold).
• Your team needs faster, real-time collaboration with outsourced partners.
• You're looking to expand or diversify your operations in North America.
  
  

How to Get Started

Transitioning to nearshoring doesn’t have to be complex. Start by:

1. Mapping your current supply chain and identifying high-tariff or high-risk areas.
2. Assessing nearshore markets that align with your product, service, or workforce needs.
3. Partnering with a nearshore expert like Amalga Group, who can manage talent sourcing, compliance, and operations setup.
4. Measuring key metrics like cost savings, turnaround time, and quality benchmarks to track ROI.

Nearshoring Is a Strategic Response to Rising Global Costs

Tariffs aren’t going away anytime soon. But that doesn’t mean you’re stuck footing the bill. By embracing nearshoring, companies are not only cutting costs but creating more agile, reliable, and scalable operations.

Looking for a smarter way to grow while keeping costs under control? Let’s talk about how nearshoring can work for you.

Download Our Free Guide: “Nearshoring 101 — How to Cut Costs Without Sacrificing Quality”

Learn the key steps, countries to consider, and how to assess ROI in this free, in-depth guide.