US Presses Mexico to Tighten AI Hardware Rules to Block China From Circumventing Tariffs: Report
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. Read Also: Canada's New 'Productivity Mega Deductio
S. 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.
-Mexico-Canada Agreement. 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. " Mexico’s AI-hardware boom raises the stakes.
9 billion of computer servers in the first half of 2026. S. 9% of shipments. Read Also: Canada's New 'Productivity Mega Deduction' Aims to Outpace Trump Tax Cuts 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. S.
Trade Representative did not immediately respond to ’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. S. midterm elections.
S. tariffs on Mexican vehicles alongside disputes over Chinese investment and regional content. The effort also fits Washington’s broader focus on transshipment. S.
duties, while USTR has repeatedly said the USMCA review should reduce dependence on non-regional inputs and strengthen North American supply chains. Read Also: Top Economist Warns Odds of a 'Serious' Fed Policy Mistake Are ‘Uncomfortably High and Rising,’ Says Rate Hikes Could Trigger 'Self-Reinforcing' Downturn Photo courtesy: Shutterstock