Strengthening North America’s Electronics Backbone

By Chris Mitchell, Vice President, Global Government Relations

Key Summary

• North America’s electronics manufacturing strength has grown under the USMCA, creating a stable and competitive regional ecosystem.
• Mexico and Canada have become essential partners, supplying advanced electronics and contributing R&D, semiconductor, and defense manufacturing capabilities.
• The 2026 USMCA review is a pivotal moment to preserve tariff free access and protect legitimate cross border production.
• Overly rigid rules of origin or broad penalties could disrupt complex supply chains and raise costs for U.S. manufacturers.
• The Association urges targeted enforcement, workable rules, and joint investment in workforce and innovation to keep North America competitive.

This week, the Global Electronics Association submitted comments to the Office of the U.S. Trade Representative (USTR) as part of the upcoming joint review of the United States-Mexico-Canada Agreement (USMCA). This review comes at a pivotal moment for North American manufacturing and for the future of our shared electronics ecosystem.

Over the past few years, North America has reemerged as one of the world’s most dynamic manufacturing regions. The USMCA helped make that possible by creating a predictable, rules-based framework that allows companies to invest with confidence and build supply chains that are secure, transparent, and close to home.

Today, Mexico and Canada are not just trading partners; they are essential collaborators. In 2024, the United States imported more than $114 billion in finished electronics from Mexico, a 22% jump from the previous year. These aren’t low-value goods; they’re complex, high-tech systems built with U.S.-made components and engineering input. Each one supports jobs, innovation, and investment across the United States.

Canada brings its own strengths, including advanced R&D, semiconductor and aerospace expertise, and close integration with U.S. defense and clean-energy manufacturing. More than half of the electronics-related goods we import from Canada feed directly into American production. That’s not outsourcing — it’s a regional partnership that makes North America stronger and more competitive globally.

The 2026 USMCA review is an opportunity to reinforce that partnership. North American electronics manufacturing depends on seamless coordination across borders. Tightening rules of origin too far or applying new penalties too broadly could disrupt legitimate production and raise costs for U.S. companies investing in this region.

Our message is simple: protect compliant trade, close real loopholes, and maintain a stable environment that rewards companies building here in North America. We are urging policymakers to:

1. Finalize a bilateral trade framework with Mexico that preserves tariff-free access and recognizes its progress on supplier diversification and traceability.
2. Keep rules of origin workable for complex, high-value manufacturing.
3. Target enforcement precisely—stop circumvention without burdening legitimate production.
4. Treat Mexico and Canada as strategic partners, not low-cost suppliers, by investing jointly in workforce, innovation, and infrastructure.

The USMCA review is a chance to reaffirm that North America’s competitiveness depends on cooperation. When the U.S., Mexico, and Canada operate as a region, we all win: our industries grow, our supply chains become more secure, and our collective resilience deepens.

The Global Electronics Association and our 1,700 member companies stand ready to work with USTR and our partners in Mexico and Canada to strengthen the ecosystem that keeps innovation, jobs, and manufacturing leadership anchored in North America.