The U.S. is reportedly pressing Mexico to adopt tougher rules of origin for artificial-intelligence hardware, seeking to stop Chinese companies and foreign suppliers from using Mexico to sidestep U.S. tariffs.
Washington Pushes Tougher North American Sourcing Rules
The proposal would require more components in AI chips, servers and related equipment to come from North America, the Wall Street Journal reported on Tuesday, citing people familiar with the negotiations.
The push comes as Washington and Mexico accelerate trade negotiations around the U.S.-Mexico-Canada Agreement. U.S. Trade Representative Jamieson Greer and Mexican Economy Secretary Marcelo Ebrard have already discussed stricter rules of origin and ways to limit “non-market inputs” in North American supply chains. In July, USTR said both sides wanted to address “free-riding from non-parties.”
Mexico’s AI-hardware boom raises the stakes. S&P Global Market Intelligence said the country exported $82.9 billion of computer servers in the first half of 2026. Server exports surged 172.1% year over year in the 12 months through June, while the U.S. absorbed 93.9% of shipments.
AI Hardware Faces Auto-Style Trade Rules
The Journal said Washington wants AI equipment to face sourcing rules similar to those governing autos. Under USMCA, passenger vehicles and light trucks must contain 75% North American regional value to qualify for preferential tariff treatment. Washington has not specified the North American-content threshold it would seek for AI hardware.
Sen. Bernie Moreno (R-Ohio) told the Journal that China believes it can “come in through the Western Hemisphere” and “pretend that things are made in Mexico.” He added, “We have to crack down on that,” warning that Mexico or Canada could become “a gateway for China to circumvent trade restrictions.”
The White House and the Office of the U.S. Trade Representative did not immediately respond to Benzinga’s request for comment.
USMCA Talks Target Wider China Trade Loopholes
The proposal lands as the two countries race toward an interim trade arrangement before the Nov. 3 U.S. midterm elections. Reuters reported that negotiations include possible relief from U.S. tariffs on Mexican vehicles alongside disputes over Chinese investment and regional content.
The effort also fits Washington’s broader focus on transshipment. An August White House report accused China of routing or lightly processing goods through third countries to evade U.S. duties, while USTR has repeatedly said the USMCA review should reduce dependence on non-regional inputs and strengthen North American supply chains.
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