(Monterrey, Mexico) A small business in northern Mexico suffered from fierce competition from China in the manufacture of small plastic components. Today, American customs duties make it never sold so many straps, traffic jams, clips, eyelets, self -locking ties and tightening necklaces.
Jorge H. Martínez, owner of a small Mexican business 200 km from the American border, sees how Donald Trump’s pricing policy turns the markets upsets, puts geopolitics above and plunges businesses into chaos.
And he is very happy.
When the Mexican business world was overwhelming with the disastrous impact of customs duties, Mr. Martínez flared the opportunity.
“In times of crisis, if you are prepared, you win,” says Martínez, 40, sitting in his office, where the rattling of the machines spits a torrent of small plastic rooms. “In truth, this is all good for us. »»
He is CEO of micro parts, in the industrial city of Monterrey. Its fifty employees produces a plethora of straps, sheets, ties, eyelets, self -locking ties and pliers, essential components for manufacturing, but which is never noticed. Micro parts produces collars notably protecting the wires that are passed through the walls, caps of screw heads for washing machines and ties to fix advertising on grocery baskets.
PHOTO CESAR RODRIGUEZ, THE NEW YORK TIMES
Micro parts sells many plastic components to large manufacturers installed in Mexico who are looking for subcontractors so as not to buy anything outside North America.
Mr. Martínez has long faced Chinese competition, which sells these low -cost parts.
Thank you, Donald
But suddenly, now they cost more. So manufacturers fall back on local subcontractors, mainly in northern Mexico. This trend was emerging before Mr. Trump’s return to power. She intensifies with each of her threats. Mr. Martínez does not complain.
When Mr. Trump announced customs duties, Mexican exporters focused on the American market had to adapt to a new environment penalizing everything that is not made in USA. Some have chosen to wait and see. Others have planned to move their production north of the Rio Grande.
However, in March, the Trump administration exempt from customs rights, imports protected by the Canada-US-Mexico Trade Agreement (ACEUM). This created a third option for manufacturers.
“All your supply chain must be in North America,” Professor Alberto Villareal, director of Nepanoa, a Chicago consulting company that supports companies that set up in Mexico, a trend called close outsourcing (nearshoring).
PHOTO CESAR RODRIGUEZ, THE NEW YORK TIMES
A technician works on a steel block that will be shaped to make a resin mold, with which we will make cheap plastic parts.
ACEUM was promoted and signed by Donald Trump in his first mandate. He has already described it as “the largest, the most equitable, the most balanced and the most modern trade agreement ever concluded”.
The agreement has detailed, sometimes complex rules, for products and industries. But, basically, to benefit from free trade-and escape Mr. Trump’s customs rights-a product must be manufactured in one of the three signatory countries from components from these countries.
A frantic race has been taking place for a few weeks to find local suppliers to buy parts which, until recently, were bought abroad, especially from China.
“It was urgent to find suppliers in the region and stop imports from Asia,” said Martínez.
Upward sales
To prepare, he bought new machines and found resin suppliers which is used to make his plastic parts. He no longer buys steel blocks in Asia that his employees transform into mussels – according to the client’s estimate – in which the resin is shaped to make them screws, ignition candles or autobloquant ties.
Sales of his business jumped 32 % in the first quarter of 2025 compared to that of 2024. Growth has since slowed down, but sales are increasing.
PHOTO CESAR RODRIGUEZ, THE NEW YORK TIMES
When Donald Trump threatened the world with customs duties, Micro Étapoes took the opportunity to buy new machines and secure his local supplies of raw materials.
“Currently, we have 600 million US dollars of orders placed to local suppliers,” said Emmanuel Loo, Minister of the Economy of the State of Nuevo León, whose capital is Monterrey. His office helps multinationals find products from Mexican manufacturers, including small players as a microphone.
This is excellent news. Local companies now have more possibilities to increase their sales and compete with Asian suppliers.
Emmanuel Loo, Minister of the Economy of the State of Nuevo León
Trump promises that his customs duties will restore the manufacturing power of the United States, but analysts have doubts. According to them, the United States, Canada and Mexico being closely linked by trade and investments, one of the means of supporting the US manufacturing industry would be to strengthen production throughout the region.
Mr. Martínez is focusing on this strategy.
“The North American block must compete with the red dragon,” he said, speaking of China, considered in its sector as the world factory. To start, you should find more suppliers like him in Mexico.
“And we are there, ready to take up the challenge,” he says.
This article was published in the New York Times.
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