Ciudad Juarez: Ciudad Juárez, one of Mexico’s key manufacturing hubs, is confronting an unprecedented economic setback, with over 64,000 jobs disappearing between June 2023 and June 2025. Local industry officials and workers attribute the losses largely to U.S. tariffs imposed during President Donald Trump’s administration, which have severely disrupted the region’s maquiladora sector.
Companies across Ciudad Juárez, including Design Group Americas, have either shut down operations or scaled back production in response to escalating costs and trade restrictions. The closures have not only left thousands unemployed but also disrupted the broader local economy, from logistics to services, which heavily depend on manufacturing activity. Rising labor costs and investor caution triggered by Mexico’s judicial reforms have further compounded the crisis, leaving businesses struggling to stay afloat.
The impact of these tariffs is visible in the declining foreign investment in the region. Chihuahua state’s manufacturing sector has seen a 56% drop, with major players like Lear Corp. and Lacroix relocating operations outside Juárez to avoid trade uncertainties and rising expenses. Industry representatives have described the tariffs as the “final straw” for factories already grappling with an increasingly challenging business environment.
The human cost is equally stark. Workers such as Fabiola Galicia, who dedicated over a decade to the local manufacturing sector, now face an uncertain future. GDP growth projections for the city have fallen below 1%, and many companies are postponing new investments until the trade landscape stabilizes.
Analysts warn that Ciudad Juárez’s predicament underscores the broader consequences of trade policy decisions, demonstrating how international tariffs can ripple through local economies, disrupt livelihoods, and reshape the industrial landscape. For Ciudad Juárez, the road to recovery may be long, requiring both domestic reforms and international cooperation to restore confidence among investors and workers alike.