US companies are scrambling to move supply chains. This small island could be the answer | Money [Video]

New York (CNN) — At the start of February, Randy Carr, the CEO of World Emblem, booked a plane ticket to the Caribbean.

President Donald Trump had just announced a 25% duty on Mexico and Canada – what would be the first of many tariffs on other countries. World Emblem, the world’s largest producer of clothing patches which counts the Department of Homeland Security, UPS, NHL, and Levi’s as customers, produces 65% of its patches in Aguascalientes, Mexico.

“It just came really fast and a lot harder than I expected,” said Carr of the tariffs. “The 25% tariffs were enough to say, this is nuts. We need to change this right now.”

While President Trump eventually limited his 25% tariff to goods that don’t comply with the US’s current free trade agreement with Mexico and Canada, USMCA, the uncertainty around trade was motivation enough to start moving his supply chain.

“The following week we …