Nearshore manufacturing means sourcing from countries that share or are close to your own time zone. For US brands, that means Mexico, Central America (Honduras, Guatemala, El Salvador, Nicaragua, Costa Rica and the Dominican Republic under CAFTA-DR) and Colombia. All are within one to three hours of US Central or Eastern time, which means a question sent Monday morning gets answered the same business day.
The shift toward nearshore accelerated sharply in 2026. The Section 301 forced-labor additional duty, effective July 24, 2026, added 12.5% to Chinese and Vietnamese apparel and 10% to Indian and Bangladeshi apparel (on top of existing MFN rates). At the same time, USMCA and CAFTA-DR countries remain fully exempt from that levy. The result is a tariff gap between Asia and the Western Hemisphere that did not exist in this form before 2026.
Nearshore is no longer a premium positioning argument. It is a sourcing math question. But the math is more nuanced than a single percentage, and this guide walks through it honestly.