Walks on West Cliff
Mexico’s Evolving Role in High‑Tech Hardware Supply Chains
During a recent walk on West Cliff with David Graham, the founder and CEO of PowerBeam Inc., a high-technology development company with offices in Mexico since 2014, we discussed Mexico’s evolving role in high-tech hardware supply chains in light of current tariff dynamics.
David shared that goods covered under the USMCA treaty between Mexico and the US are tariff-free, so tariffs only apply to goods not covered by the USMCA, which means you can:
- Import components (e.g., motors, batteries, etc.) from China into Mexico
- Integrate them into finished products with US/Mexican-origin parts
- Ship tariff-exempt products into the US
Why MEXICO deserves a closer look:
- Strong engineering talent (often outperforming India or China)
- Robust industrial base from machining to complex manufacturing
- Time-zone, cultural, and operational alignment with US teams
- Faster logistics and site visits compared to Asia
For many US-based electronic high-tech hardware companies, Mexico isn’t just a tariff workaround, it’s a long-term competitive advantage.
Beyond the business benefits, the country’s culture, food, and coastal areas also add to its appeal.
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