Nearshore News: Stacked Tariffs, Latin America's Trade Strategy, and Retail Bets on Robots

As trade tensions ripple across borders, U.S. companies are hit with hidden costs from “tariff stacking,” while Latin America reshapes its alliances in a shifting global order. Meanwhile, At Home Group files for bankruptcy, and Keen’s new U.S. factory serves as a reminder: reshoring could mean automation instead of jobs.

Nearshore News Summary:

• U.S. importers are facing higher-than-advertised tariff bills due to “tariff stacking,” where new duties are layered on top of existing ones. (Reuters)
• While Mexico is doubling down on U.S. alignment, other countries in Latin America are diversifying ties with China, Europe, and within the region. (Americas Quarterly)
• At Home Group has filed for Chapter 11 bankruptcy as part of a broader restructuring plan. CEO Brad Weston noted that evolving trade dynamics and tariffs have complicated operations (WSJ)
• Keen’s new Kentucky factory will require just 24 workers thanks to heavy automation, highlighting how domestic production doesn't always mean job creation. (Inc.)

Tariff 'stacking' adds another headache for US importers

Published: June 16, 2025
Source: Reuters

U.S. importers are facing unexpectedly high tariff bills due to tariff stacking — where new tariffs are layered on top of existing ones. While the official tariff rate may appear lower, cumulative charges can reach over 70%. A new 55% baseline is now being used to reflect this compounded reality, particularly on goods from China.

Key points:

• Tariff stacking raises real costs: Importers are often paying far more than the publicized tariff rates because new duties are added to old ones rather than replacing them.
• Businesses pass on the burden: Many U.S. companies, like Rodgers Wade and Afina, are passing the cost of stacked tariffs directly to customers, labeling them as unavoidable surcharges.
• Baseline tariff set at 55%: The 55% figure includes a 10% reciprocal tariff, 20% for fentanyl-related accusations against China, Mexico, and Canada, and pre-existing 25% tariffs from Trump’s first term.
• Calls for exemptions grow: Companies like Lalo Baby Products are pushing for carve-outs for essentials like baby goods, but the Trump administration has resisted issuing new exemptions.
• Reshoring ambitions clash with complexity: Despite campaign promises to revive U.S. manufacturing, the administration’s inconsistent tariff policies — and crackdown on immigrant labor — have made reshoring difficult in practice.

How U.S. Tariffs Are Rewiring Latin American Trade

Published: June 16, 2025
Source: Americas Quarterly

The U.S.'s sweeping new tariffs are reshaping global commerce and pushing Latin America to rethink its trade strategies. While Mexico is doubling down on U.S. alignment, other countries are diversifying ties with China, Europe, and within the region. Latin America’s response in the face of rising uncertainty may determine its economic future in an increasingly fragmented global order.

Key points:

• U.S. Trade Shift Upends WTO Norms: The U.S. has abandoned multilateral trade rules imposing unilateral, country-based tariffs of up to 50%, undermining the WTO’s non-discrimination principle.
• Latin America Faces Strategic Crossroads: While Mexico clings to U.S. ties under the USMCA, other countries like Brazil and Argentina are strengthening partnerships with China, and Chile and Uruguay are pursuing regional trade diversification.
• Tariff Complexity Encourages Workarounds: Country-specific tariffs incentivize “triangulation”—rerouting goods through low-tariff countries—which could be hard to track and manage without massive infrastructure upgrades.
• Commodities Offer Leverage: Latin America’s abundance of lithium, copper, and rare earths—plus its geographic proximity to major markets—gives it bargaining power, especially if paired with infrastructure investment.
• Future Depends on Reform and Strategy: Without long-term planning, improved governance, and trade facilitation reforms, Latin America risks being sidelined as U.S.-China tensions reshape global trade.
  

Retailer At Home Files Chapter 11 Bankruptcy, Hobbled by Tariffs and Debt

Published: June 16, 2025
Source: WSJ

At Home Group has filed for Chapter 11 bankruptcy as part of a broader restructuring plan that will eliminate nearly $2 billion in debt and inject $200 million in new capital. The Dallas-based home décor retailer aims to stabilize its finances and emerge stronger amid ongoing challenges—including tariff pressures—while continuing to operate stores and serve customers.

Key points:

• Chapter 11 Filing: At Home and select subsidiaries have voluntarily entered Chapter 11 to restructure and stabilize operations.
• Debt Elimination and Capital Infusion: The restructuring will wipe out almost all of the company’s $2 billion in funded debt and provide $200 million in new capital.
• Continued Operations: At Home will continue serving customers in-store and online during the bankruptcy process.
• $600M Financing Agreement: The company secured $600 million in debtor-in-possession financing—$200 million in new capital and $400 million from existing secured debt.
• Tariff Pressures Cited: CEO Brad Weston noted that evolving trade dynamics and tariffs have complicated operations, but the restructuring aims to enhance long-term resilience and competitiveness.

This Shoe Company is Launching a New U.S. Factory. Don’t Expect Hundreds of New Jobs

Published: June 17, 2025
Source: Inc

Keen, a U.S.-based footwear company, is opening a highly automated sneaker factory near Louisville, Kentucky that will employ only 24 people. While the move aligns with “Made in the USA” goals, it underscores the deeper reality that automation—not job creation—can drive much of domestic manufacturing today. 

Key points:

• Automation Over Jobs: Keen’s new Kentucky factory will require just 24 workers thanks to heavy automation, highlighting how domestic production doesn't always mean job creation.
• Labor Cost Disparity: Keen cited U.S. labor costs—10 to 12 times higher than in Asia—as the main reason for investing in robots instead of people.
• Still Mostly Overseas: Only 9% of Keen’s shoes are made in the U.S.; the rest are manufactured abroad to access lower costs and more efficient supply chains.
• Reshoring Isn’t Simple: Similar to Apple’s struggles, Keen’s story reflects broader obstacles in reshoring: high labor costs, supply chain gaps, and lack of scalable production infrastructure.
• Robots, Not Workers: While U.S. consumers support more domestic manufacturing, few are willing to work in factories, meaning future growth in this sector may benefit robots more than people.