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The Hofusan Industrial Park is a complex about 20 km north of Monterrey , Mexico , and a 2.5-hour drive to the U.S. border city of Laredo , Texas .
The 25% tariff on Mexican imports will "significantly" affect these Chinese businesses, professor says.
China 's foreign direct investment in Mexico has increased significantly over the past five years .
The United States-Mexico-Canada Agreement ( USMCA ) is up for review and renewal in July 2026 .
Chinese companies are using the "backdoor" of USMCA to continue to import goods into the U.S. Chinese companies setting up factories in Mexico have become a pressing issue in bilateral trade negotiations between the United States and Mexico .
"Traceability and trade compliance will be the focus of the next generation of trade issues," said Nick Vyas , a global supply chain expert.
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