Recently, tensions have been rising between the U.S. and its trade partners. The U.S. is looking to reduce its dependence on China and has experienced friction with Mexico. As a result, American companies have begun to reevaluate their outsourcing strategies. Even Though tariffs generally target goods, not services, the current geopolitical climate is impacting the global business landscape, influencing not only logistics and supply chain decisions but also choices related to software development and IT services.

Countries such as Colombia, Peru, Bolivia, Ecuador, and Chile are quickly becoming strategic nearshore destinations for U.S. companies seeking reliable, culturally aligned, and geopolitically stable partners. These nations offer not only a strong pool of tech talent but also time zone compatibility and improved infrastructure, making them ideal alternatives to nearshore outsourcing.

While tariffs do not directly affect service-based industries, the confidence of both clients and companies is influenced by the current situation, trade policies, and international relations. The growing tension between the U.S. and China, along with recent frictions with Mexico, has led many businesses to choose closer allies — both geographically and diplomatically.

President Trump and other political leaders have shown interest in strengthening trade ties within the Western Hemisphere. If this momentum continues, Latin America could become a key part of the U.S.'s future outsourcing strategies. This shift is not only about risk avoidance — it’s about embracing long-term strategic partnerships that align with evolving global priorities.

Even if tariff discussions subside, the benefits of nearshore with Latin America remain clear: cost-effective talent, better communication, aligned work hours, and easier travel for in-person collaboration. And if global trade restrictions with Asia tighten again, Latin America will shine even brighter as the “safe, friendly, and familiar” choice for software development.

Are you interested in exploring the advantages of nearshoring in Latin America? At TRUEXTEND, we help you scale software projects with highly qualified talent and borderless collaboration. Contact us (info@truextend.net) today and discover how we can become your strategic partner.