Electrical control panels: Mexico's fast-growing power gear trade with the US

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Mexico Trade Corridor · Product brief · HS 8537

Mexico's exports of electrical control panels to the United States almost doubled between 2020 and 2025, but growth slowed in 2025. This brief sets out the numbers from both sides, the rules in force, and where makers need working capital.

Published October 23, 2026 · Facts as of October 23, 2026 · 9 min read · Trade data: UN Comtrade, 2020 to 2025 · Rules as of October 23, 2026

Facts as of October 23, 2026. This page states the facts as they stood on that date. Tariffs, rules and figures may have changed since publication. Tariffs and trade policy change often, so we review these pages every month and update them.

#10

Mexico's No. 10 export to the US in 2025, ranked by value as reported by Mexico (UN Comtrade, 4-digit HS codes). The US figure is shown beside it because the two countries count the same trade differently.

US$8.3bnMexico's exports to the US, 2025, as reported by Mexico

US$8.8bnThe same flow, 2025, as reported by the US

+94.7%Change 2020 to 2025, Mexico data

US$1.3bnMexico's imports from the US in the same code, 2025, Mexico data

What is it?

HS 8537 covers boards, panels, consoles and cabinets fitted with switches, breakers and other devices that control and distribute electricity. Boards for up to 1,000 volts make up 96.6% of the value. Mexico reported US$8.3 billion of these exports to the US in 2025 ¹.

Why does it matter?

Control panels are Mexico's tenth-largest export to the US. Exports grew 94.7% from 2020 to 2025 on Mexico's data ¹. Makers such as Schneider Electric and Vertiv are expanding plants in Mexico that build power equipment, including equipment for data centers ^2,3.

How does it work?

Plants in Querétaro, Reynosa, Monterrey and Tijuana build and test panels, often to a customer's design, and ship them by truck to US sites ^2,4. Panels that meet USMCA rules of origin enter the US duty-free as of October 23, 2026 ^7,8.

In this brief

1. How big is the control panel trade between Mexico and the US?
2. Which panels cross the border?
3. Who makes the panels, and where?
4. How do the panels get from the plant to the buyer?
5. Which rules and tariffs apply?
6. Where do makers need cash, and how is it financed?
7. What should control panel traders watch next?

01How big is the control panel trade between Mexico and the US?

Mexico reported US$8.3 billion of electrical control panel exports to the US in 2025. That is up 94.7% from US$4.2 billion in 2020, and up 2.4% from 2024 ¹. Control panels were 1.5% of Mexico's US$545.4 billion of reported exports to the US ¹.

Growth has slowed. Exports rose 24.3% in 2022 and 22.9% in 2023, then 8.5% in 2024 and 2.4% in 2025, on Mexico's data ¹.

Trade also runs south. Mexico reported US$1.3 billion of control panel imports from the US in 2025, up 64.2% since 2020 but down 2.0% from 2024 ¹. On Mexico's figures, the country sold US$6.9 billion more panels to the US than it bought ¹.

The two countries' records are close. US data shows US$8.8 billion of imports from Mexico in 2025, 7.1% above Mexico's figure, and US$1.7 billion of exports to Mexico ¹. Our data gap explainer sets out why the two sides differ.

Chart

Control panel trade, both directions, both sides of the data

• Mexico to US, Mexico data
• Mexico to US, US data
• US to Mexico, Mexico data
• US to Mexico, US data

US$ billion. Solid lines: as reported by Mexico. Dashed lines: as reported by the US. Source: UN Comtrade, 2020 to 2025.

02Which panels cross the border?

The code has two 6-digit lines. Boards and panels for up to 1,000 volts were US$8.0 billion in 2025, or 96.6% of the total, as reported by Mexico ¹. Boards for more than 1,000 volts were US$0.3 billion, or 3.4% ¹.

The lower-voltage line covers equipment that distributes power inside buildings, plants and data centers. The southbound mix is almost the same: the line for up to 1,000 volts was 98.1% of Mexico's imports from the US in 2025 ¹.

Chart

The two control panel lines Mexico ships to the US

US$ billion and share of the 4-digit total, 2025, as reported by Mexico. Source: UN Comtrade.

03Who makes the panels, and where?

Large electrical equipment groups make most of these products in Mexico. Schneider Electric is expanding in Querétaro to 115,000 square meters. Two facilities are complete and a third is planned. The site builds electrical distribution equipment, including engineer-to-order projects, where each unit is built to a customer's design ².

Vertiv announced a US$150 million expansion of its plant in Reynosa, Tamaulipas, in July 2026, with more than 1,000 direct jobs. Its products include UPS systems, cooling, server cabinets and power distribution equipment ^3,4. Vertiv also has plants in Tijuana, Mexicali and Monterrey ⁴.

ABB said in January 2024 that it had nine plants in Mexico and planned to expand at least seven of them within three years ⁵. Reporting based on Banco de México data lists electronic boards, transformers, connectors and electrical systems among the Mexican exports linked to US AI infrastructure ⁶.

Demand comes from US data centers, utilities and industrial plants.

04How do the panels get from the plant to the buyer?

Panels are heavy cabinets, and they usually travel north by truck. Plants in Reynosa and Monterrey are close to the Texas border, and plants in Tijuana and Mexicali are close to California. Our guide to border crossings covers each port.

Many large orders are built to the buyer's design, then installed and commissioned at the US site. The plant ships with a commercial invoice, and the sale contract sets who pays for each leg of the trip and who clears customs. The Incoterms guide explains the standard terms.

1. Order and designA data center developer, utility or plant orders panels, often to its own design.
2. Plant in MexicoA plant in Querétaro, Reynosa, Monterrey or Tijuana builds and tests the panels.
3. PaperworkThe plant issues a commercial invoice and a USMCA certification of origin. A customs broker files the Mexican export declaration.
4. Truck to the USThe cabinets travel north by truck. The US importer claims USMCA treatment.
5. Site and commissioningThe panels are installed and tested on site. Payment follows the agreed milestones.

Vertiv announced a US$150 million expansion of its Reynosa plant in July 2026, with more than 1,000 direct jobs.

05Which rules and tariffs apply?

Panels that meet the USMCA rules of origin enter the US duty-free ^7,8. Our guide to USMCA rules of origin explains the certificate.

The 10% Section 301 tariff on Mexican goods, in force since July 24, 2026, does not apply to goods entered with a USMCA claim or to goods under Section 232 ⁸. IEEPA tariff collection ended on February 24, 2026, after a Supreme Court ruling ⁷.

The main open question for this product is metal. Under Proclamation 11032, in force since June 8, 2026, Section 232 duties apply at 50% to Annex I-A steel, aluminum and copper articles and at 25% to Annex I-B derivatives, on full value. USMCA gives no general exemption from these duties ⁹. We have not confirmed whether any HS 8537 line is listed in an annex. On August 4, 2026 Commerce proposed adding 14 products as derivatives. HS 8537 was not among the products reported ¹⁰.

All rates here are as of October 23, 2026. Our guide to US tariffs on Mexican goods sets out each measure.

Rules in force

As of October 23, 2026. Live list: corridor watch.

Measure	What it does	Since	Status
USMCA rules of origin	Qualifying panels enter the US duty-free 7,8	Jul 1, 2020	In force
US Section 301, forced labor	10% on Mexican goods. Exempt with a USMCA claim; goods under Section 232 excluded 8	Jul 24, 2026	In force
US Section 232, steel, aluminum and copper	50% (Annex I-A) or 25% (Annex I-B) on full value, under Proclamation 11032. Whether any HS 8537 line is listed must be checked 9	Jun 8, 2026	Check tariff line
US Section 232, proposed new derivatives	Commerce proposed adding 14 products. HS 8537 not among those reported 10	Aug 4, 2026	Proposed
IEEPA tariffs	Collection ended after the Supreme Court ruled on February 20, 2026 7	Feb 24, 2026	Ended

06Where do makers need cash, and how is it financed?

A panel maker buys steel cabinets, copper, breakers and electronics before it builds a unit. Large engineer-to-order projects can take months to build and test, and payment often follows project milestones. The maker carries the cost of materials and labor until each milestone is paid.

Atradius reports that about 30% of business-to-business sales in Mexico are made on credit, and that medium and large industrial firms give the longest terms ¹². Many sales run on open account terms. Large custom orders also carry performance risk, because the buyer depends on the maker to deliver on time.

For sales to buyers inside Mexico, the US Commercial Service advises exporters to use EXIM credit insurance or confirmed letters of credit ¹³. Our guides to factoring in Mexico and financing a new plant's supply chain go further.

Where the cash goes

From order to final milestone

1. Order
   Design and materialsThe maker designs the unit and buys cabinets, copper, breakers and electronics.
2. Build
   Wages and testingWorkers build and test the panels. Imported inputs can enter under IMMEX.
3. Shipment
   Freight and customsTrucking and the customs broker are paid at or near the border.
4. Delivery
   Milestone invoicesThe maker invoices on delivery and on commissioning, as the contract sets out.
5. Payment
   Cash returnsThe buyer pays each milestone on its terms. Medium and large industrial firms in Mexico give the longest terms ¹².

The order of cash needs is typical for an engineer-to-order maker. Actual days depend on each contract.

Before shipmentPre-shipment finance

Funds materials and build time against a confirmed order.

New or distant buyerLetters of credit

A bank undertakes to pay when the maker presents the agreed documents.

After invoiceFactoring or invoice discounting

The maker sells or borrows against its unpaid invoices.

Buyer may not payTrade credit insurance

Covers most of an unpaid invoice if a covered buyer fails to pay.

07What should control panel traders watch next?

Watch the Section 232 metals annexes and any new derivative listings, since panels contain steel and copper. Watch new US supply too. Hitachi Energy and Siemens are investing in transformer plants in the US ¹⁴. USMCA stays in force under annual joint reviews ¹¹. The live list of measures is on our corridor watch page.

• PendingCommerce decision on the 14 derivative products proposed on August 4, 2026 ¹⁰.
• PlannedThird Schneider Electric facility in Querétaro, reported in August 2026 ².
• Under wayVertiv's US$150 million Reynosa expansion, announced in July 2026 ⁴.
• Dec 31, 2027Section 232 metals rates under Proclamation 11032 run to this date ⁹.
• Jul 1, 2036USMCA ends on this date unless the three countries confirm an extension. Annual reviews run until then ¹¹.

Questions traders ask

How much control panel trade is there between Mexico and the US?

Mexico reported US$8.3 billion of exports to the US in 2025 under HS 8537, and US$1.3 billion of imports from the US. US data shows US$8.8 billion of imports from Mexico and US$1.7 billion of exports to Mexico.

Is the trade still growing?

Yes, but more slowly. Mexico's exports to the US grew 94.7% from 2020 to 2025. Growth was 22.9% in 2023, 8.5% in 2024 and 2.4% in 2025.

Which companies make electrical panels in Mexico?

Schneider Electric is expanding in Querétaro, Vertiv is expanding in Reynosa and also has plants in Tijuana, Mexicali and Monterrey, and ABB has nine plants in Mexico.

Do Mexican control panels pay US tariffs?

Panels that meet USMCA rules of origin enter the US duty-free and are exempt from the 10% Section 301 tariff when entered with a USMCA claim. Section 232 duties on steel, aluminum and copper apply if a panel's tariff line is listed in an annex. These rules are as of October 23, 2026.

Why do Mexico's and the US figures differ?

Each country records its own customs declarations, with different rules for value, country of origin and timing. For control panels, the US import figure for 2025 is 7.1% higher than Mexico's export figure.

Read next

• Corridor hubThe Mexico to US corridor: what moves and how it is paid for
• Corridor hubCorridor watch: tariffs and rules in force
• Corridor guideUS tariffs on Mexican goods: what applies now
• Corridor guideNearshoring: financing a new plant's supply chain
• Product briefSwitches and connectors: two-way electrical trade between Mexico and the US
• Product briefWire, cable and wiring harnesses: copper in the Mexico-US auto chain
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Trading electrical control panels between Mexico and the US? Ossiano Capital works on trade finance in this corridor.

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Sources and notes

1. UN Comtrade, annual trade data 2020 to 2025, HS 8537, Mexico and the US as reporters. Downloaded October 2026; 2025 figures may be revised. https://comtradeplus.un.org/
2. Mexico News Daily, Schneider Electric plans major Querétaro expansion, August 25, 2026. https://mexiconewsdaily.com/business/schneider-electric-major-queretaro-expansion/
3. Mexico News Daily, Data center company Vertiv to expand Reynosa facility, investing US$150 million, July 8, 2026. https://mexiconewsdaily.com/business/data-center-company-vertiv-expand-eynosa-facility-investing-us150-million/
4. Cluster Industrial, Vertiv will invest US$150 million to expand its Reynosa plant, July 9, 2026. https://clusterindustrial.com.mx/vertiv-invertira-150-mdd-para-expandir-su-planta-en-reynosa-y-crear-1-000-empleos/
5. DPL News (El Financiero), ABB will expand capacity and plants in three years, January 11, 2024. https://dplnews.com/?p=219876
6. Mexico Business News, US AI boom reshapes Mexico's export map, July 27, 2026. https://mexicobusiness.news/cloudanddata/news/us-ai-boom-reshapes-mexicos-export-map
7. Tetakawi, Mexico tariffs 2026: what manufacturers actually need to know, updated October 5, 2026. https://tetakawi.com/blog/mexico-tariffs-2026-what-manufacturers-actually-need-to-know/
8. Congressional Research Service, U.S.-Mexico Trade Relations (IF11175), August 13, 2026. https://www.everycrsreport.com/files/2026-08-13_IF11175_366b72c3fd2f3ebe10b28bf3feddca0088251bbb.html
9. Thompson Hine SmartTrade, President modifies Section 232 tariffs on aluminum, copper and steel imports, June 2026. https://www.thompsonhinesmartrade.com/2026/06/president-trump-modifies-section-232-tariffs-on-aluminum-copper-and-steel-imports/
10. KPMG TaxNewsFlash, US BIS Section 232 tariffs: derivative articles, August 2026. https://kpmg.com/us/en/taxnewsflash/news/2026/08/us-bis-section-232-tariffs-derivative-articles.html
11. White & Case, USMCA 2026 joint review: United States declines to extend agreement, July 2, 2026. https://www.whitecase.com/insight-alert/usmca-2026-joint-review-united-states-declines-extend-agreement-triggering-annual
12. Atradius, B2B payment practices trends in Mexico, 2026. https://atradius.us/knowledge-and-research/reports/b2b-payment-practices-trends-in-mexico-2026
13. US Commercial Service, Mexico country commercial guide: trade financing. https://www.trade.gov/country-commercial-guides/mexico-trade-financing
14. pv magazine USA, US transformer market faces severe supply constraints as lead times extend to four years, May 11, 2026. https://pv-magazine-usa.com/2026/05/11/u-s-transformer-market-faces-severe-supply-constraints-as-lead-times-extend-to-four-years/

Trade values are US dollars from UN Comtrade at the 4-digit HS level unless a 6-digit line is named. Mexico and the US record the same shipments under different rules for value, country of origin and timing, so their figures differ. Percent changes compare 2025 with 2020. All facts on this page are as of October 23, 2026, the date of publication, and may have changed since. Rules and tariffs are as of October 23, 2026 and change often: check the corridor watch before you act.

About this brief. Prepared for Ossiano Capital. People planned, researched, wrote and checked this brief, using AI tools to help with research and checking. You are welcome to quote or reuse it: please credit Ossiano Capital and link to this page.