Nearshoring: production moved next to the market it serves — and the math that says when it's worth it.
Nearshoring means making the part close to where it is sold: truck freight in days instead of 30–45 on the water, smaller lots, and 0% duty when the part qualifies under a free-trade agreement. In 2026 the tariff stack turned it from a slogan into a per-part landed-cost calculation. We quote every part from China and other countries, per HTS code, and tell you which lines move — and which shouldn't.
Four words that get used interchangeably and shouldn't be.
Nearshoring
Production moved close to the market it serves. For a North American buyer: a factory within truck range of the US, transit measured in days, releases measured in pallets rather than containers.
Offshoring
Production far from the market, usually an ocean away. China is the archetype — the deepest supplier bench and the fastest tooling on earth, and now the heaviest tariff stack of any origin.
Reshoring
Production brought back to the home market. Wins on heavy, low-labor parts, small programs, and anything where freight and Section 232 together erase the offshore price gap.
Friendshoring
Production placed in allied or FTA-partner economies regardless of distance. Overlaps with nearshoring when the partner is close and with offshoring when it isn't. The duty treatment, not the label, is what reaches your P&L.
The tariff stack, as of September 26, 2026.
MFN, plus the 25% China list rate, plus the 12.5% from the July 24, 2026 Section 301 action. List 4A parts carry 7.5% instead of 25%, so +20 points; unlisted goods +12.5.
10% for some economies. The same Section 301 action covers 60 economies, so "not China" does not mean "no surcharge". The cheapest factory price outside China still pays this unless the next column applies.
MFN waived and no Section 301 — when the part meets the rule of origin for its HTS heading (tariff shift, regional value content, or both). Checked per part, never assumed. A part that fails the rule pays MFN + 10%.
Feb 20, 2026
The Supreme Court struck the IEEPA reciprocal and fentanyl tariffs; those amounts became refundable.
Feb 24 – Jul 24
A 10% Section 122 surcharge on most imports filled the gap and expired on schedule.
Jun 8, 2026
Section 232 metals reset through Dec 31, 2027: 50% on articles essentially all steel, aluminum or copper, 25% on derivatives, at any origin; under 15% metal content exempt. Section 232 goods do not also pay the 12.5%/10%.
Jul 24, 2026
The 2026 Section 301 action on 60 economies took effect. A second Section 301 investigation (excess capacity) opened in March and is still open — one reason every account gets a quarterly origin review.
Compared per part, not per country.
Four lines, added up for each origin on each part. The factory price is only the first of them, and it is the one that varies least.
FOB price
What the factory charges, loaded at origin. Usually higher outside China; rarely by enough to decide anything on its own.
Duty per HTS code
The full stack for the 8- or 10-digit code at each origin — list rate, Section 301, Section 232, or the FTA's 0% once the rule of origin is proven.
Freight to your dock
Ocean plus drayage, or truck. Per unit, not per container, and including the working capital tied up in 30–45 days of transit inventory.
Our fee, 10% of FOB
Included on every alternative we quote so the comparison is against your current cost, not against a number that omits us.
| Molded EPDM gasket · HTS 4016.93.50 · MFN 2.5% · List 3 · 120,000/yr · freight to Dallas | China | Alt. origin · 12.5% duty | Alt. origin · FTA, 0% |
|---|---|---|---|
| FOB price, per unit | $1.20 | $1.26 | $1.38 |
| Duty | $0.48 (40.0%) | $0.19 (15.0%) | $0.00 (0%) |
| Freight | $0.06 | $0.07 | $0.03 |
| Landed | $1.74 | $1.52 | $1.41 |
| Our fee, 10% of FOB | — | $0.13 | $0.14 |
| All-in, per unit | $1.74 | $1.65 | $1.55 |
| Annual, all-in | $208,800 | $197,520 | $185,760 |
Three reasons it wins. Three reasons it doesn't.
No ocean schedule, no port congestion, less inventory in transit and less safety stock at your warehouse. On bulky, low-value parts the freight line alone can decide it.
A supplier a truck ride away can ship in pallets, on a schedule that tracks your demand. Ocean economics push toward full containers and quarterly bets.
Where the rule of origin is met, MFN is waived and the 12.5% never applies. Against a List 1–3 China part that is a 37.5-point swing plus MFN before anyone negotiates price.
Steel, aluminum and copper articles pay 50% (derivatives 25%) wherever they are made. The duty gap collapses to the China list rate; nearshoring then wins on lead time and MOQ, or not at all.
Electronics, complex assemblies, anything needing five sub-vendors within a bus ride. Moving the last operation does not move the supply chain, and the rule of origin may fail on imported inputs.
List 4A parts carry +20 from China against +12.5 elsewhere. Our injection-molded PP enclosure (HTS 3926.90.99, MFN 5.3%) lands $2.77 from China, $2.79 from a 12.5% origin and $2.50 from an FTA origin — under 1% net after our fee. Recommendation: stay put.
Outcomes, not a relocation project.
Lower landed cost on the lines that move
Double digits on the parts where duty and freight favor a nearer origin — 11% in the gasket example — and a written "stay where you are" on the parts where they don't. You keep the incumbent shipping either way until the second source has shipped twice.
Defects caught in the factory, not at the dock
The same inspection system at every origin: golden sample, in-process check at 20–30% of the run, AQL pre-shipment, loading supervision, written remediation. A factory you can drive to is a bonus, not a substitute.
CFO-ready numbers in ten days
A landed-cost sheet per SKU — China, a 12.5% origin, an FTA-qualifying origin — with named factories, the rule-of-origin check, and the Section 232 screen. No retainer, no setup fee; 10% of FOB only on the POs you place, paid to the factory directly.
Questions we get on this
What is nearshoring, in plain terms?
Nearshoring is production moved close to the market it serves. For a North American buyer that means a factory within truck range of the US instead of an ocean transit away. Offshoring is the opposite (production far away, usually across an ocean); reshoring brings it back to the home market; friendshoring places it in allied or FTA-partner economies regardless of distance. Supply chain diversification is the umbrella term for all of them, and a China plus one program is the version that keeps China in the mix.
Nearshoring vs. offshoring: which is cheaper in 2026?
It depends on the part, which is the whole point. As of September 26, 2026, a China-origin part pays MFN plus 37.5 points on List 1–3 headings (20 on List 4A, 12.5 if unlisted). Other origins pay MFN + 12.5% (10% for some) unless the goods are FTA-qualifying, in which case 0%. Factory prices run higher outside China and freight runs lower. On our molded-gasket example the best origin nets 11% after our fee; on a List 4A plastic enclosure the answer is to stay put. We run the arithmetic per HTS code and show you both kinds of answer.
Does nearshoring mean 0% duty?
Only when the part meets the rule of origin for its HTS heading under the applicable free-trade agreement, and only once that is documented. We check it per part, never assume it: a part that fails the rule pays MFN + 10%. Section 232 goods (articles essentially all steel, aluminum or copper at 50%, derivatives at 25%) pay it at any origin, FTA partner or not.
Which countries do you nearshore to?
The ones where your part lands best. The re-quote names the factory and the country, under NNN, once we have qualified it for your part. Until then we describe origins by what matters to the landed cost: duty treatment, freight mode and transit, and where the sub-supply lives.
Send us your top five SKUs. Get every viable origin back.
No commitment. In ten business days you’ll have a landed-cost comparison you can put in front of your CFO, with named factories behind every number.