Fact check: U.S. companies leaving for Mexico

1. Summary of the results

The analyses strongly support the claim that U.S. companies are leaving for Mexico. Foreign direct investment from the United States in Mexico's manufacturing sector grew by 18% in 2024, and a Deloitte study found that 62% of American companies are considering or have already started moving part of their production to Mexico ^[1]. Multiple sources confirm this trend, with companies moving to Mexico to optimize their manufacturing operations and tap into the country's growing industrial landscape ^[2].

The movement is driven by several key factors: cost-effective production, strategic location, and favorable trade agreements ^[2]. Even high-profile companies associated with "America First" rhetoric are participating in this trend - Trump Media outsourced jobs to Mexico despite Trump's public stance against outsourcing ^[3]. Additionally, five iconic American brands, including Stellantis, are moving manufacturing to Mexico due to Trump's tariffs, putting thousands of U.S. jobs at risk ^[4].

2. Missing context/alternative viewpoints

The original statement lacks important nuance about the complexities of the U.S.-Mexico trade relationship and the impact of the Trump administration's policies on nearshoring and reshoring ^[5]. While companies are moving to Mexico, this movement can actually complement the U.S. reshoring effort, particularly in strategic industries such as automotive, electronics, and semiconductors ^[5].

The USMCA agreement plays a crucial role in facilitating this movement and could influence U.S. companies' decisions to operate in Mexico ^{[6] [7]}. This trade agreement has rebalanced trade to support manufacturing across North America ^[7], suggesting that the movement to Mexico may be part of a broader regional manufacturing strategy rather than simply companies abandoning the United States.

Manufacturing executives and trade policy advocates would benefit from promoting the narrative that this movement is economically beneficial, as it supports their business interests in accessing cheaper labor and production costs. Conversely, labor unions and domestic manufacturing advocates would benefit from emphasizing the job losses and economic risks to American workers.

3. Potential misinformation/bias in the original statement

The original statement "U.S. companies leaving for Mexico" presents an oversimplified view that could be misleading. The phrasing suggests a wholesale abandonment of the United States, when the reality is more complex. Many companies are moving part of their production to Mexico rather than completely relocating ^[1], and this movement can actually complement U.S. manufacturing efforts in certain strategic industries ^[5].

The statement also lacks context about the policy drivers behind this movement, particularly how Trump's tariffs have actually accelerated the trend of companies moving to Mexico ^[4], creating an ironic situation where protectionist policies designed to keep jobs in America have had the opposite effect. This omission could lead to misunderstanding about the root causes of the phenomenon.