US Urges Mexico to Stop AI Hardware Tariff Bypasses
Washington is pushing for stricter sourcing rules to prevent Chinese firms from using Mexico as a loophole to evade tariffs on artificial intelligence equipment.
The United States is pressuring Mexico to adopt tougher regulations on the origin of AI hardware, aiming to close a gap that allows Chinese companies to sidestep U.S. tariffs. According to reports, Washington wants to ensure that chips, servers, and related equipment sold in the region are genuinely sourced from North America rather than routed through third countries.
This diplomatic push occurs as trade negotiations between the U.S. and Mexico accelerate under the U.S.-Mexico-Canada Agreement (USMCA). Officials have already discussed limiting what is termed as free-riding by non-parties, reflecting a broader concern that Mexico or Canada could become gateways for China to circumvent existing trade restrictions.
Mexico’s server exports surge
The stakes are high because Mexico has become a major hub for AI hardware. S&P Global Market Intelligence data shows the country exported nearly $83 billion worth of computer servers in the first half of 2026. Shipments to the U.S. alone saw a dramatic increase, with the American market absorbing the vast majority of these exports.
This boom has raised alarms in Washington. Critics argue that the current rules allow foreign suppliers to use Mexican facilities as a transit point. By tightening these rules, the U.S. hopes to prevent a scenario where goods are merely processed in Mexico to gain preferential tariff treatment, a practice often referred to as transshipment.
Auto-style rules for AI chips
The proposed framework would mirror the stringent sourcing rules already applied to the automotive industry. Under current USMCA provisions, vehicles must contain a specific percentage of regional value to qualify for duty-free access. The U.S. Trade Representative is now seeking to apply similar regional content thresholds to AI equipment, although the exact percentage has not yet been disclosed.
Senator Bernie Moreno of Ohio has been vocal about this issue, warning that China believes it can enter the Western Hemisphere and disguise the origin of its goods. He emphasized the need to crack down on these practices to protect North American supply chains from being undermined by non-market inputs from third countries.
Trade talks face midterm deadline
These negotiations are moving quickly, with both governments aiming to secure an interim trade arrangement before the U.S. midterm elections in November. The discussions include potential relief for Mexican vehicle exports while simultaneously addressing disputes over Chinese investment and regional content requirements.
The White House and the Office of the U.S. Trade Representative have not yet commented on the specific details of the AI hardware proposals. However, an August report from the administration accused China of routing goods through third countries to evade duties, signaling that this issue remains a top priority for U.S. trade policy as reported by GN technics/hardware.
