Reshoring

Related terms

Nearshoring

Nearshoring is moving production to a nearby country, for US buyers usually Mexico or Canada, to cut transit time, inventory, and tariff exposure while keeping labor costs below domestic levels. Parts that meet USMCA rules of origin can enter the US duty-free.

Landed cost

Landed cost is the total cost of a part delivered to the buyer's dock, including piece price, tooling amortization, packaging, freight, insurance, duties, tariffs, brokerage, and inventory carrying cost. Comparing offshore and domestic quotes on piece price alone understates the cost of the offshore part.

Tariff

A tariff is a tax on imported goods, collected in the US by Customs and Border Protection and set by the product's HTS code and country of origin. Beyond base duty rates, added tariffs such as Section 232 and Section 301 duties can change with little notice.