Manufacturing in Tijuana: Your Questions Answered
You’ve been reading the headlines. Tariff talks, trade uncertainties, supply chain disruptions. Your CFO is asking hard questions about costs, your customers want stable pricing, and your competitors seem to be making moves while you’re still researching.
Sound familiar?
If you’re a manufacturing executive considering Tijuana, you’re probably juggling a dozen concerns right now. Maybe you’re wondering if the timing is right, or if the trade benefits are too good to be true. Perhaps you’re worried about managing operations in a different country, or whether your products will actually qualify for those USMCA exemptions everyone keeps talking about.
Here’s the thing: these aren’t trivial concerns. They’re the exact questions that keep smart executives up at night, Googling trade regulations and calculator in hand, trying to make sense of it all.
But here’s what we’ve learned from working with hundreds of manufacturers who’ve made the move: most of the fears that feel overwhelming from a distance become manageable problems with the right information and partners. The companies thriving in Tijuana today aren’t necessarily smarter or braver than you, they just got clear answers to the right questions.
So let’s cut through the noise. Below are the real questions we hear from executives every week, along with straight-forward answers that’ll help you make a decision based on facts, not fear.
1. What happens if new tariffs come along after I’ve already invested in moving to Tijuana?
Here’s the good news: Tijuana manufacturers are pretty well protected thanks to the USMCA framework. If your products meet the regional value content requirements, you get tariff-free access to the U.S. market. Plus, there’s the IMMEX program that exempts you from VAT and import duties on your materials and equipment. It’s like having a built-in safety net that keeps your costs predictable, even when trade winds shift.
2. How do I know for sure my products will actually qualify for USMCA exemptions?
The magic number is 75%, that’s how much of your product’s value needs to come from North America. But don’t worry about figuring this out alone. Tijuana has tons of experienced customs brokers and trade advisors who’ve been doing this dance for years. They’ll help you structure your supply chain the right way and can even run eligibility audits before you make any big commitments. Think of them as your trade compliance safety net.
3. I don’t have a team for all that customs paperwork. How am I supposed to manage that?
You don’t have to! That’s where shelter companies come in; they’re like your behind-the-scenes support team. They handle all the customs paperwork, HR stuff, compliance issues, and regulatory filings so you can focus on what you do best: running your business. It’s outsourcing made simple.
4. What if the trade agreement gets shaken up in 2026 or under a different administration?
Mexico isn’t putting all its eggs in one basket, they have over 50 international trade agreements beyond USMCA. But honestly, even if trade rules change, Tijuana’s fundamentals are solid. The low labor costs, affordable real estate, and efficient operations mean you’ll stay competitive no matter what happens in Washington or Ottawa.
5. My customers expect consistent pricing. What if these exemptions just disappear?
Here’s why that’s less scary than it sounds: manufacturers in Tijuana typically save 40-50% compared to U.S. operations. Those savings are substantial enough that even if you hit some bumps in the road, you can usually absorb small cost increases without having to pass them on to your customers. It’s like having a financial cushion built right in.
6. Some of my components come from Asia. Will that disqualify me from being “North American”?
Not necessarily! As long as your finished product hits that 75% North American content threshold, you’re golden. Companies in Tijuana deal with this all the time; they work with supply chain experts to tweak their sourcing strategies and make sure everything adds up correctly. It’s more flexible than you might think.
7. How can I project ROI when there’s so much uncertainty around trade?
Let’s talk numbers – and these are pretty clear:
- Labor costs: 50-70% lower than the U.S.
- Industrial lease rates: $0.68-$0.80 per square foot
- Energy costs: 30% lower than major U.S. cities
Plus, if you’re IMMEX-certified, you can get your VAT back in just 20 days, which really helps your cash flow. These aren’t small advantages; they’re game-changers that make the math work even in uncertain times.
8. I don’t speak Spanish or know Mexican law. How can I possibly manage an operation there?
Tijuana’s business ecosystem is basically designed for people just like you. Shelter services handle the setup and keep you compliant with local laws. Most service providers are bilingual, and the industrial parks and legal firms specialize in helping foreign companies navigate cross-border business. You won’t be flying blind.
9. My competitors are already in Mexico and understand these rules. Won’t I be playing catch-up?
Actually, you can level the playing field pretty quickly by tapping into Tijuana’s experienced support network. The same local experts who helped major companies like Samsung, Thermo Fisher, and Safran get established can guide you through USMCA compliance, available incentives, and operational setup. You’re not starting from scratch; you’re joining a proven system.
10. Everyone keeps talking about the “2026 review” of USMCA. Should I just wait and see what happens?
Here’s the thing: waiting means missing out on real cost advantages that are available right now. Instead of waiting, you can structure your operation to be resilient no matter what 2026 brings:
- Use IMMEX for immediate VAT and duty benefits
- Build flexible sourcing strategies that can adapt
- Partner with local providers who can help you adjust if rules change
Tijuana’s strategic location and cost advantages aren’t going anywhere. Whether trade rules tighten or loosen, you’ll be in a strong position.
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