The past few years revealed the fragility of long-distance supply chains, as pandemic lockdowns, geopolitical tensions and trade conflicts spurred a “massive shift” in global logistics. Companies and governments are rethinking far-flung factories and building hemisphere-wide networks; under the current administration, “nearshoring” is being redefined as policy tilts toward onshoring critical industries (chips, EVs, batteries) in the U.S., while leveraging the Americas’ geographic advantages. This commentary explores that shift and the emerging role of Latin America as a regional distribution hub, with an eye to how digital technologies and AI are reshaping supply chains.

Policy Shift: Emphasizing U.S. Production

Following the established America First trade paradigm, the current administration has been implementing a comprehensive, multi-layered tariff regime designed to reshape global trade flows and promote domestic production; the stated rationale is to eliminate large and persistent trade deficits and secure national and economic interests by reducing reliance on foreign producers.