Tariffs a🙈re set to be a big win for one North American country: Mexico.

A new report from Bank of America showed that while higher import taxes pushed by President Donald Trump may bring some manufaꦰ🔴cturing back to the U.S., the policy is more likely to create even more production opportunities for nearby countries like Mexico.

According to the BofA Global Research survey of 56 of the firm's analysts, only 20% of respondents expect that tariffs and other policy changes will result in significant “澳洲幸运5官方开奖结果体彩网:reshoring,” where manufacturing that is based in another country is relocated to the U.S. Instead, nearly two in five said that relocation back to the U.S. is more likely to be "mild" and focused on specific sectors.

“Therefore, nearshoring, or friendshoring, appears much more likely to benefit from tariffs t꧅his time around,” the June 5 report said. “Mexico is considered to be a net beneficiary from the [move] from cost efficiency to geopolitical risk management.”

The report comes as 澳洲幸运5官方开奖结果体彩网:Mexico has been subject to its own set of tariffs by the Trum🍰p administration, though some ha𝔍ve been delayed. 

Reshoring May Favor Automation Over New Jobs

Trump has argued that tariffs will benefit the U.S. economy, namely that they will bring manufacturing back to the U.S. and reduce the 澳洲幸运5官方开奖结果体彩网:U.S. trade deficit. However, the💙 report showed that most reshoring is likely to occur in select industries like electronics, biotechnology, and metals and mining.

Reshoring already has been happening, the report found, creating nearly 2 million🐟 U.S. manufacturing jobs over the past 15 years, with about half of that coming in the past five years. However, manufacturing jobs still only account for 8% of the U.S. workforce, down from 30% in the 1980s.

That’s thanks to higher tariffs introduced in Trump’s first administration, along with job-creating legislative initiatives from former President Joe Biden’s administration like the  澳洲幸运5官方开奖结果体彩网:Inflation Reduction Act (IRA) and the Creating Helpfu👍l Incentives to Pro🌠duce Semiconductors (CHIPs) Act.

Most of the new manufacturing jobs in the U.S. are focused on electrical equipment, appliances, electric vehicle batteries, and computers, as well as transportation equipment like cars and airplanes, the reꦺport said. But advances in automation may undercut some job creation, it added. 

“Since most of the reshoring will be concentrated in industrials and manufacturing, r😼eshoring will not create a significant number of new jobs as those new production lines will be mostly automated,” the report said. 

Mexico, Vietnam Expec👍ted To Benefit from ‘Nearsh🌞oring’

What’s more expected, especially in more labor-focused industries, is “friendshoring” or “nearshoring,” in which production is moved out of places like China and either closer to the U.S., or to places with better U.Sꦕ. relations, the survey found. 

“The United States-Mexico-Canada Agreement (USMCA) and geographical proximity makes Mexico a more straightforward potential beneficiary,” the report found. “Additionally, Mexico sh꧙ould be a net beneficiary in transportation, food and beverages, restaurants, and homebuilders.”

Other countries likely to benefit from this shift are 澳洲幸运5官方开奖结果体彩网:Vietnam, Thailand, and India, the report found.