President Trump’s surprise announcement threatening tariffs on Colombian imports has sent shockwaves through businesses using the South American country as a dependable alternative to China. For companies seeking stability amidst global uncertainty, this sudden move could upend plans and disrupt billions in investment.

Over the past few years, Colombia had become a hotspot for “nearshoring”—a strategy where companies shift production closer to the U.S. to reduce reliance on China. With Mexico also facing tariff threats, Colombia emerged as a safer bet. Since 2018, foreign investors have poured $7.6 billion into over 300 nearshoring projects there, with American firms leading the charge.

Todd Fagley, CEO of Minnesota-based MedSource Labs, was among those betting on Colombia. His company set up a medical equipment factory there three years ago, part of a growing trend to navigate a challenging global landscape. “Nearshoring isn’t just a passing fad,” Fagley said. “The world is only getting more complicated.”

But Trump’s tariff threat has thrown a wrench into these plans. Businesses now face uncertainty over whether Colombia will remain a viable option. With trade tensions escalating, companies are left scrambling to rethink their strategies.

The fallout from this announcement highlights the fragile nature of global trade. For now, Colombia’s role as a nearshoring haven hangs in the balance, leaving businesses to weigh their next moves in an increasingly unpredictable market.