Afraid of losing the US-Canada trade pact, Mexico alters its laws and removes Chinese parts

Mexico is facing pressure due to accusations of serving as a conduit for Chinese products into North America, leading to fears of exclusion from the USMCA trade agreement under a re-elected Donald Trump or struggling Canadian Prime Minister Justin Trudeau. In response, Mexico’s ruling Morena party is encouraging companies to replace Chinese parts with locally made ones, with plans to start producing microchips in Mexico. The country is also making legal adjustments to align with US requirements under the trade pact, as experts predict a possible renegotiation in 2026 but doubt a complete abandonment of the agreement.

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