Issue link: https://iconnect007.uberflip.com/i/1545206
42 SMT007 MAGAZINE I APRIL 2026 facturers, particularly Chinese, using Mexican and Canadian production platforms to access the U.S. market. Chinese foreign direct investment into Mexico has surged, and U.S. negotiators want rules of origin tight enough that goods built largely from Asian inputs cannot qualify for tariff-free entry. Higher RVC with a U.S. content target. The ad- ministration has signaled it will push to increase regional value content thresholds in "a number of strategic sectors," and (critically) that those RVCs will include a dedicated U.S. content requirement, not just a North American content requirement. This is a significant departure from current USMCA practice, which generally treats U.S., Mexican, and Canadian con- tent as fungible. Mexico's export promotion pro- grams. USTR is also taking a hard look at Mexico's IMMEX, PRO- SEC, and Rule 8 (Regla Octava) programs, which together allow Mexican manufacturers, including the U.S.-owned maquiladoras that dominate electronics assembly, to bring in non-originating inputs at reduced or suspended Mexican du- ties. Critics argue these programs let Asian inputs effectively enter the U.S. market duty-free; defenders point out they support inputs that simply are not available in North America. What the Electronics Industry Is Saying The Global Electronics Associa- tion, which represents more than 1,700 North American electronics manufacturers and design firms, has been clear in its testimony to USTR and the U.S. International Trade Commission. Chris Mitchell, the Association's vice president for global government relations, testified in December 2025 that the electronics industry is "all in" on USMCA—or any comparable or improved successor—and urged policymakers to maintain tariff-free access for compliant trade, keep rules of origin workable for complex produc- tion, focus enforcement narrowly on circumven- tion, and invest in joint North American workforce and infrastructure. The Association's data make a powerful case for why the integrated model matters. In 2024, the U.S. imported more than $114 billion in finished electronics from Mexico, a 22.5% year-over-year