The United States and Mexico share one of the world’s most productive and strategically aligned manufacturing partnerships. This report explores how deeply integrated electronics supply chains between the two nations drive U.S. industrial strength, job growth, and national security. With Mexico now serving as a major production hub and re-export platform for electronics, maintaining tariff-free access is essential to sustaining America’s competitiveness and reducing reliance on geopolitical rivals.

However, new tariffs threaten to disrupt this integration—raising costs, slowing innovation, and undermining reshoring efforts across critical industries like defense, aerospace, and semiconductors. The report calls for a renewed U.S.–Mexico trade agreement that safeguards tariff-free electronics trade while strengthening joint enforcement mechanisms, positioning North America as a unified industrial bloc capable of meeting global challenges.