Why Mexico?

Malmgren argues that Mexico has surpassed China in terms of its economic integration with the United States. She highlights several key factors that contribute to this transformation:

1. Stronger Supply Chains – Mexico now has more reliable and efficient supply chains with the U.S. than with China. This is particularly crucial as companies seek nearshoring strategies to reduce dependence on distant manufacturing hubs.

2. Competitive Costs – The cost of manufacturing in Mexico is equal to or lower than in China, making it an attractive alternative for businesses looking to optimize expenses.

3. Higher Quality Control – Mexico has improved its quality standards, especially in high-value industries such as automotive, aerospace, and electronics. This gives it an edge over China in producing precision-engineered goods.

4. Geopolitical Stability – The U.S.-Mexico relationship is less volatile than the U.S.-China trade tensions. Malmgren notes that Mexico's trade agreements and geopolitical alignment with the U.S. make it a safer and more predictable partner.