Electronics Industry Warns Mexico Tariffs Could Undercut U.S. Manufacturing and Supply Chain Resilience
Global Electronics Association urges policymakers to protect North American trade and nearshoring gains as 30% tariffs approach key decision deadlines
Bannockburn, Illinois, USA, Oct. 23, 2025 (GLOBE NEWSWIRE) -- As negotiations over U.S.–Mexico trade policies near an October 29 deadline, the Global Electronics Association today released a new policy brief, From Risk to Resilience: Why Mexico Matters to U.S. Manufacturing. The report warns that proposed 30% tariffs on electronics imports from Mexico would fracture North American supply chains, raise costs for U.S. manufacturers, and undermine efforts to reshore production and strengthen domestic competitiveness.
Authored by the Association’s Chief Economist, Shawn Dubravac, and the Industry Intelligence team, the report concludes that Mexico has developed into a full-fledged production hub within the North American ecosystem, drawing on a diversified global network of suppliers Data shows that Mexico’s imports from China have declined significantly since 2017, with sourcing shifting to Vietnam, South Korea, Taiwan, and the European Union.
“Electronics manufacturing today depends on cross-border collaboration,” said Lorena Villanueva, director of the Global Electronics Association’s Mexico office. “Mexico has become an essential partner in strengthening North American manufacturing. Our supply chains are not competitors; they are collaborators. Policies that recognize this partnership will ensure both nations remain competitive in a rapidly changing global market.”
The Association emphasized that maintaining a strong trade partnership with Mexico is a top priority for manufacturers on both sides of the border. Many of its members report that U.S.–Mexico trade is their single most important policy issue.
The release of the report comes at a critical moment: the current extension for U.S.–Mexico trade negotiations expires on October 29, and the Office of the United States Trade Representative (USTR) is accepting public comments on the United States–Mexico–Canada Agreement (USMCA) through November 3. The Global Electronics Association will submit formal comments on behalf of the industry and plans to testify at the USTR’s public hearing on November 17.
“U.S.–Mexico trade isn’t just important—it’s indispensable to a resilient North American electronics ecosystem,” said Chris Mitchell, vice president of global government relations at the Global Electronics Association. “Boosting U.S. manufacturing and supporting Mexico’s industrial growth are two sides of the same coin.”
The report underscores that many electronics systems and components cross the U.S.–Mexico border multiple times before final assembly, reflecting deeply integrated supply chains that support competitiveness, jobs, and security across the region. Disrupting these flows with tariffs would drive up costs, slow delivery times, and threaten the survival of small and medium-sized manufacturers.
The Association urges policymakers to finalize a bilateral trade agreement that preserves tariff-free access, strengthens enforcement, and reinforces Mexico’s role as a co-builder of North American manufacturing resilience.
“Mexico’s manufacturing evolution is one of the clearest examples of nearshoring success,” the report concludes. “Protecting that progress is essential to the region’s economic stability and to building truly resilient supply chains.”
The full report, "From Risk to Resilience: Why Mexico Matters to U.S. Manufacturing," is available for download at https://go.electronics.org/-mexico-policy-brief.
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About the Global Electronics Association
The Global Electronics Association is the voice of the electronics industry, working with thousands of members and partners to build a more resilient supply chain and drive sustainable growth. We advocate for fair trade, smart regulation, and regional manufacturing, and educate on industry practices, actionable intelligence and technical innovations to empower the future. The Association collaborates with governments and companies worldwide to advance a trusted and prosperous electronics industry. Formerly known as IPC, the organization serves a $6 trillion market and operates from offices across Asia-Pacific, Europe and North and South America. Learn more at www.electronics.org.
Michelle Leff Mermselstein Global Electronics Association 202-661-8092 MichelleMermelstein@electronics.org
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