Summary

Fearing potential threats to the U.S.-Mexico-Canada trade pact (USMCA), Mexico is taking steps to reduce reliance on Chinese imports and comply with trade agreement standards.

Mexico President Claudia Sheinbaum announced efforts to replace Chinese parts with Mexican or North American-made components, including plans to produce microchips domestically.

Mexico is also amending laws to meet USMCA requirements, such as maintaining independent regulatory agencies.

This comes amid U.S. criticism over Chinese steel and parts entering North America via Mexico, with tariffs already imposed.