Jorge H. Martínez, owner of a small Mexican manufacturing firm near the U.S. border, has witnessed how President Trump’s threats to impose high tariffs disrupted markets, shifted geopolitical dynamics, and created uncertainty for businesses.
Contrary to many others, Martínez welcomes these changes.
While much of Mexico’s business community feared the negative impact of tariffs, Martínez identified a promising opportunity.
“In times of crisis, if you’re prepared, you win,” said Martínez, 40, speaking from his office above the hum and clatter of machines producing dozens of small plastic components. “The reality is that all this has worked to our advantage.”
As CEO of Micro Partes, which employs around 50 people in Monterrey’s industrial hub, he oversees the production of countless tiny items—belts, plugs, fasteners, washers, cable ties, and clamps—that are essential to many production lines but often go unnoticed by the general public. Their products include hollow rings that protect cables passing through walls, caps covering washing machine screws, and buttons securing advertisements on shopping carts.
For years, Martínez has battled fierce competition from China, where many of these small parts are manufactured at low cost.
However, with imports becoming less affordable due to tariffs, his company is part of a growing trend: businesses increasingly seek local suppliers, especially in northern Mexico, to source components they previously imported. This shift began before Trump took office but has accelerated amid his tariff threats, benefiting companies like Micro Partes.
When tariffs were announced earlier this year, Mexican firms exporting primarily to the U.S. had to adjust to a new trade environment that penalized products not made in America. Some companies chose a wait-and-see approach, while others contemplated relocating manufacturing to the U.S.
In March, the U.S. government clarified that tariffs would not apply to imports covered under the newly signed trilateral trade agreement between the United States, Mexico, and Canada, opening a new avenue for manufacturers.
“The entire supply chain must be within North America,” explained Alberto Villareal, CEO of Nepanoa, a Chicago-based consultancy assisting companies establishing operations in Mexico. This strategy, known as nearshoring, has gained traction recently.
The trade deal, promoted by Trump during his first term and hailed as the largest, fairest, and most modern agreement of its kind, includes detailed, sometimes complex rules for products and industries.
Generally, to qualify for preferential treatment and avoid tariffs, a product must be manufactured in one of the three countries with at least some of its materials sourced locally.
This led to a frantic search for local manufacturers capable of producing parts that companies previously imported from overseas, especially from China.
“There was an urgent need to find suppliers in the region and stop importing from Asia,” Martínez said.
To adapt, he invested in new machinery and sourced resin suppliers locally for producing plastic components. He also replaced Asian steel hubs—key materials shaped by workers into molds customized to clients’ needs, such as screws, spark plugs, or clips—with domestic suppliers.
Micro Partes’ sales soared by 32 percent in the first quarter of this year compared to the same period last year. Though growth has since slowed, sales remain above last year’s levels.
Even multinational Asian companies have become new clients, including LG’s plant in Reynosa, Samsung’s facility in Tijuana, and Chinese electronics and appliance manufacturer Hisense, which operates near Monterrey.
“We currently have $600 million in purchase orders that we’re supporting with local suppliers,” said Emmanuel Loo, Secretary of Economy for Nuevo León state, whose capital is Monterrey. His office has been assisting multinational companies in locating Mexican manufacturers, including small businesses like Micro Partes.
“This is good news for us,” Loo added. “Local companies now have greater opportunities to expand sales and compete with Asian firms.”
While Trump has claimed tariffs will revive U.S. manufacturing, analysts say the effects remain uncertain. Given the deep integration of the U.S., Canada, and Mexico through trade and investment, some experts suggest strengthening manufacturing across the North American region as a strategy to boost U.S. production.
Martínez is betting on this regional approach.
“North America has to compete with the Red Dragon,” he said, referring to China, widely known in the industry as the world’s factory. For now, this means finding more suppliers like him in Mexico.
“And here we are,” he added, “ready and raising our hand.”
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