Mexico pushes to raise regional content in electronics exports as US trade talks continue

Mexico is partnering with the United States and Canada to create a plan that aims to replace manufactured components from Asia and other regions with products made in the North American region, according to a senior Mexican official at a recent conference. Luis Rosendo Gutiérrez, Deputy Economy Minister for Foreign Trade, discussed the initiative during a speech in Mexico City.

The goal is to increase the value added by the region in manufactured items, particularly electronics, which currently stands at around 7%-8%. This value is significantly lower than the overall 44% Mexican value added in "Made in Mexico" exports. Gutiérrez outlined plans to increase this regional value added to 20, 30, or 40%, working in collaboration with the United States and Canada.

The ambitious economic development and industrial policy strategy known as Plan México, unveiled in early 2025, includes increasing the use of locally produced content in various industries, including automotive, aerospace, electronics, semiconductors, pharmaceuticals, and chemicals. In an effort to shield Mexican industries and ensure their long-term sustainability, Mexico implemented new tariffs on several goods imported from countries without free trade agreements, including China and Taiwan.

These tariffs, which took effect on January 1, have resulted in a decrease in imports across nearly 1,500 product categories. However, there are suspicions that some imports, especially from Vietnam, which more than doubled in the first half of 2026, may actually be Chinese goods. Gutiérrez announced that a fourth round of trade talks between Mexico and the United States had been postponed due to scheduling conflicts related to Chinese President Xi Jinping's visit to the U.S. and the upcoming G20 Summit in December.

The talks are scheduled to resume in October, with Mexico seeking to reduce Section 232 tariffs on steel, aluminum, and automobiles.