USMCA Review: A Critical Opportunity to Fortify North American Electronics

by Chris Mitchell, chief advocacy officer 

Key Summary

• The upcoming 2026 USMCA review is a major opportunity to strengthen North America’s integrated electronics ecosystem
• Electronics manufacturing in Mexico and Canada significantly boosts U.S. production through tightly linked, intra-firm supply chains
• Tariff-free access, workable rules of origin, and strong enforcement against circumvention are essential to maintaining competitiveness
• Joint North American investment in workforce, innovation, and infrastructure is needed to support shared growth
• The Global Electronics Association urges policymakers to protect and enhance the regional partnership that underpins technological leadership

As the 2026 review of the U.S.–Mexico–Canada Agreement (USMCA) approaches, U.S. policymakers have a rare chance to reinforce a North American partnership that drives our shared competitiveness, resilience, and long-term growth.

Yesterday, I had the privilege of delivering that message on behalf of Global Electronics Association members at a public hearing of the U.S. International Trade Commission in Washington. I was proud to represent the interests of our 1,700 North American member companies — leaders, innovators, and manufacturers whose work powers modern life. The Association has also formally submitted comments to the U.S. Trade Representative and shared our perspective broadly across agencies and stakeholders.

At its core, my message was simple:

• We are “all in” on the USMCA, or any comparable or improved successor pact, because predictable, rules-based trade is good for our members, good for North America, and good for the world.
• Under USMCA, the growth of electronics manufacturing in Mexico and Canada has strengthened U.S. electronics production by creating a deeply integrated regional supply base in which all three countries play essential roles. Those connections are real and measurable.
• Collaboration among companies across countries constitutes the backbone of how our companies design, build, and deliver advanced technologies every day.

Our recent report, Why Mexico Matters to U.S. Manufacturing, illustrates this clearly. In electronics, 67% of U.S. imports from Mexico and 48% of U.S. exports to Mexico are intra-firm. That means real companies moving real components across borders in coordinated production systems. Aerospace, defense, motor vehicles, medical devices, semiconductors—they all rely on this integrated ecosystem.

Mexico has become a vital production hub and re-export platform for electronics, making tariff-free access essential to our competitiveness. Canada contributes world-class R&D, semiconductor and aerospace capabilities, and deep integration with U.S. defense and clean-energy manufacturing. More than half of electronics imports from Canada go directly into U.S. production of finished goods.

This is a partnership that makes the United States — and North America — stronger. As the Trump Administration considers next steps on North American trade policy, the Association urge them to:

• Maintain tariff-free access for USMCA-compliant trade.
• Ensure workable rules of origin for complex, high-value production. Electronics components often cross the U.S. border multiple times before reaching the final customer.
• Focus enforcement on stopping circumvention—without disrupting legitimate, integrated production.
• Invest jointly with Mexico and Canada in workforce, innovation, and infrastructure to strengthen our shared competitiveness.

The stakes could not be higher. If the 2026 review goes off-course, billions in investment, tens of thousands of jobs, and North America’s technological leadership could be put at risk. That’s why I was proud to work with small and large companies across North America’s electronics industry to present a clear and constructive industry position to the Commission at this critical moment.

The Global Electronics Association will continue working closely with our member companies and the governments of all three countries to strengthen the ecosystem that keeps innovation, jobs, and manufacturing leadership anchored in North America.

View full testimony.