Phones and network equipment: Mexico's routers and switches head north

← Mexico Trade Corridor

Mexico Trade Corridor · Product brief · HS 8517

Mexico shipped US$14.2 billion of network and communication equipment to the United States in 2025, most of it data gear such as routers and switches ¹. 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.

#7

Mexico's No. 7 export to the US in 2025, ranked by value as reported by Mexico (UN Comtrade, 4-digit HS codes). It is also No. 18 among imports from the US. The US figure is shown beside it because the two countries count the same trade differently.

US$14.2bnMexico's exports to the US, 2025, as reported by Mexico

US$13.2bnThe same flow, 2025, as reported by the US

+69.0%Change 2020 to 2025, Mexico data

US$2.2bnMexico's imports from the US in the same code, 2025, Mexico data

What is it?

HS 8517 covers telephones and smartphones, and equipment that sends or receives voice, images or data, such as routers, switches and modems. Mexico reported US$14.2 billion of these exports to the US in 2025 ¹.

Why does it matter?

This is Mexico's second-largest electronics export to the US after computers and servers in this series. Network gear also feeds the build-out of US data centers, alongside servers and cabling ^1,3.

How does it work?

Contract manufacturers in Jalisco and Chihuahua assemble the equipment from imported parts and send it north by truck ⁴. They sell to large US buyers on credit terms, so they need cash for parts and for the wait until payment.

In this brief

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

01How big is the phone and network equipment trade between Mexico and the US?

Mexico reported US$14.2 billion of phone and network equipment exports to the US in 2025. That is up 22.4% from US$11.6 billion in 2024, and up 69.0% from US$8.4 billion in 2020 ¹. The line was 2.6% of Mexico's US$545.4 billion of reported exports to the US ¹.

Trade also runs south, on a smaller scale. Mexico reported US$2.2 billion of imports from the US in 2025, up 86.3% since 2020 ¹. On Mexico's figures, the country sold US$12.0 billion more of this equipment to the US than it bought from the US ¹.

The two countries count the same trade differently. Northbound, the figures are close: US data shows US$13.2 billion of imports from Mexico in 2025 ¹. Southbound, the US reported US$6.5 billion of exports to Mexico, three times Mexico's import figure ¹. No source we found explains the southbound gap. Our data gap explainer sets out how the two sides record trade in general.

With the rest of the world, Mexico buys more than it sells in this code. Secretaría de Economía data show US$17.4 billion of imports and US$14.9 billion of exports in 2024, a trade deficit of US$2.5 billion ².

Chart

Phone and network equipment 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 products cross the border?

Data equipment leads by far. The 6-digit line for apparatus that receives, converts and sends data, including routers and switches, was US$12.3 billion in 2025, or 86.8% of the total, as reported by Mexico ¹. US data puts the same line at US$11.5 billion ¹. Parts follow at US$0.9 billion, then other communication apparatus at US$0.7 billion ¹.

Smartphones are a small part of the northbound trade. Mexico reported US$0.02 billion of smartphone exports to the US in 2025 ¹. Southbound, the US reported US$1.3 billion of smartphone exports to Mexico, while Mexico reported almost none as imports from the US ¹. No source explains this difference.

Reporting on Banxico data lists boards, connectors and cabling among Mexico's exports tied to AI infrastructure ³. Servers have their own brief: computers and servers.

Chart

The largest phone and network 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 equipment, and where?

Production sits mainly in Jalisco and Chihuahua. INEGI data for the first quarter of 2026 show the two states together made nearly 80% of exports in the wider computing, communication and electronics branch ⁴.

The makers are mostly global contract manufacturers. Companies with plants in these states include Foxconn, Jabil and Flex, and server and communication equipment makers include Pegatron, Inventec, Wistron, Wiwynn and Sanmina ⁴. They build for brand owners and for large buyers. End customers named in the AI supply chain are Microsoft, Amazon, Google and Meta ⁴.

We found no reliable source that lists which brands and models are made in Mexico under this code.

Jalisco and Chihuahua made nearly 80% of exports in Mexico's computing, communication and electronics branch in the first quarter of 2026.

04How does the equipment get from the plant to the buyer?

Most of this equipment travels by truck through crossings in Texas and Baja California, as general practice. Our guide to border crossings covers each port.

Plants that build for export usually bring in components under Mexico's IMMEX program, which lets them import inputs temporarily without paying import duties, as general practice. The sale contract sets who pays for each leg and who clears customs, usually through an Incoterms rule. The Incoterms guide explains each one.

1. ComponentsChips, boards and other components arrive, mostly from Asia, at plants in Jalisco and Chihuahua.
2. AssemblyA contract manufacturer builds routers, switches and other equipment for a brand or a large buyer.
3. PaperworkThe maker issues a commercial invoice and, where it applies, a USMCA certification of origin. A customs broker files the export declaration.
4. Truck northThe equipment travels by truck through Texas or Baja California crossings.
5. US buyerThe equipment reaches a data center, network operator or distributor. The invoice is now due on the agreed terms.

05Which rules and tariffs apply?

Two US measures in force set the tariff picture for this code. 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 ⁶. The former 25% IEEPA tariff on non-USMCA Mexican goods ended on February 24, 2026, after a Supreme Court ruling ⁵.

The US Section 232 tariff on semiconductors, in force since January 15, 2026, sets 25% on a narrow list of advanced chips and goods containing them. It names products under 8471.50, 8471.80 and 8473.30. HS 8517 sits outside the listed codes ^7,13. A trade-law summary describes network equipment as a possible target of a second phase. No proclamation had been found as of October 23, 2026 ⁸.

In a report of April 14, 2026, Banco Base put the average US tariff on Mexican electronics at 0.45%, against 10.53% for China. The rules have changed since ⁹. We did not retrieve the USMCA product-specific rule of origin for HS 8517. Our guide to USMCA rules of origin explains the certificate. All rates here are as of October 23, 2026.

Rules in force

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

Measure	What it does	Since	Status
US Section 301, forced labor	10% on Mexican goods. Exempt with a USMCA claim; goods under Section 232 excluded 6	Jul 24, 2026	In force
US Section 232, semiconductors	25% on advanced chips and goods containing them under 8471.50, 8471.80 and 8473.30. HS 8517 is outside the listed codes 7,13	Jan 15, 2026	Not listed
US IEEPA tariffs	Collection ended after the Supreme Court ruling of February 20, 2026. The former 25% on non-USMCA Mexican goods no longer applies 5	Feb 24, 2026	Ended
USMCA rule of origin, HS 8517	Product-specific rule not retrieved. Check the USMCA text before a claim	Jul 1, 2020	To be confirmed
Section 232, possible second phase	Could add network equipment as a derivative product. No proclamation found 8	Not set	Pending

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

A contract manufacturer buys components, holds them in stock, builds the equipment and ships it before the buyer pays. Most of this trade runs on open account terms, where the buyer pays after delivery. Atradius reports that about 30% of business-to-business sales in Mexico are made on credit, and that about one fifth of invoices are overdue ¹¹.

The southbound trade carries more buyer risk for US sellers. The US Commercial Service reports that importers in Mexico often pay 30 to 45 days late. It advises US sellers to use a confirmed letter of credit or insurance from the Export-Import Bank of the United States ¹⁰. Our guides to US export credit for buyers in Mexico and factoring in Mexico go further.

Where the cash goes

From component order to payment

1. Order
   Components boughtThe maker buys chips, boards and other components, often in US dollars.
2. Production
   Stock and wagesComponents sit in the plant while equipment is built and tested, and workers are paid.
3. Shipment
   Freight and customsTrucking, the customs broker and any duty are paid at or near the border.
4. Invoice
   Waiting for paymentThe buyer pays on its terms. About one fifth of B2B invoices in Mexico are overdue ¹¹.
5. Payment
   Cash returnsDeductions or disputes can cut or delay the payment. See deductions and chargebacks.

The order of cash needs is typical for an electronics assembler. Actual days depend on each contract.

Stocking componentsInventory finance

Funds components held in the plant, secured on the stock.

After invoiceReceivables finance

The maker borrows against or sells its unpaid invoices to large buyers.

Selling to buyers in MexicoLetters of credit

A bank undertakes to pay the seller when it presents the agreed documents.

Buyer may not payTrade credit insurance

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

07What should phone and network equipment traders watch next?

USMCA stays in force. On July 1, 2026 the US did not agree to renew it in its current form, so the agreement now goes through annual joint reviews until 2036 unless the three countries confirm an extension ¹⁴. El Financiero reports that Washington is watching the Asian content of Mexican electronics ¹². Any second phase of Section 232 could add network equipment ⁸. The live list of measures is on our corridor watch page.

• PendingAny second phase of Section 232 that adds network equipment. No proclamation found as of October 23, 2026 ⁸.
• OngoingUS scrutiny of Asian content in Mexican electronics ¹².
• AnnualUSMCA joint reviews, after the US did not agree on July 1, 2026 to renew the agreement in its current form ¹⁴.
• Jul 1, 2036USMCA ends on this date unless the three countries confirm an extension ¹⁴.

Questions traders ask

How much phone and network equipment trade is there between Mexico and the US?

Mexico reported US$14.2 billion of exports to the US in 2025 and US$2.2 billion of imports from the US, under HS 8517. US data shows US$13.2 billion of imports from Mexico and US$6.5 billion of exports to Mexico.

Does Mexico export smartphones to the US?

Very few. Mexico reported US$0.02 billion of smartphone exports to the US in 2025. Most of the trade is data equipment such as routers and switches, at US$12.3 billion, or 86.8% of the total.

Do phones and network equipment from Mexico pay US tariffs?

Goods entered with a USMCA claim are exempt from the 10% Section 301 tariff. HS 8517 is outside the codes listed in the January 2026 Section 232 tariff on semiconductors. A possible second phase could add network equipment. These rules are as of October 23, 2026.

Where in Mexico is network equipment made?

Mainly in Jalisco and Chihuahua. In the first quarter of 2026 the two states made nearly 80% of exports in the wider computing, communication and electronics branch, according to INEGI data.

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. Northbound the two sides differ by US$1.0 billion in 2025. Southbound the US figure is three times Mexico's. No source explains the gap for this code.

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 guideUSMCA rules of origin and certificates
• Corridor guideUS export credit for buyers in Mexico
• Product briefComputers and servers: Mexico's largest export to the US, led by AI racks
• 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 phones and network equipment between Mexico and the US? Ossiano Capital works on trade finance in this corridor.

Start the Conversation

Sources and notes

1. UN Comtrade, annual trade data 2020 to 2025, HS 8517, Mexico and the US as reporters. Downloaded October 2026; 2025 figures may be revised. https://comtradeplus.un.org/
2. Secretaría de Economía, Data México, HS 8517 product profile, 2024 data. https://www.economia.gob.mx/en/profile/product/168517
3. Mexico Business News, US AI boom reshapes Mexico's export map (Banxico data via Milenio), July 27, 2026. https://mexicobusiness.news/cloudanddata/news/us-ai-boom-reshapes-mexicos-export-map
4. Expansión, Chihuahua y Jalisco concentran exportaciones de tecnología e IA (INEGI data), August 5, 2026. https://expansion.mx/economia/2026/08/05/chihuahua-jalisco-concentran-exportaciones-tecnologia-ia
5. 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/
6. Congressional Research Service, U.S.-Mexico Trade Relations (IF11175), August 13, 2026. https://www.everycrsreport.com/files/2026-08-13_IF11175_366b72c3fd2f3ebe10b28bf3feddca0088251bbb.html
7. The White House, Adjusting imports of semiconductors, semiconductor manufacturing equipment and their derivative products into the United States, January 14, 2026. https://www.whitehouse.gov/presidential-actions/2026/01/adjusting-imports-of-semiconductors-semiconductor-manufacturing-equipment-and-their-derivative-products-into-the-united-states/
8. TariffLens, Section 232 semiconductor tariff guide (secondary source), May 27, 2026. https://www.tarifflens.ai/blog/section-232-semiconductor-tariff-july-2026-phase-2-guide
9. EMSNow, Banco Base data on Mexican electronics exports, April 14, 2026. https://www.emsnow.com/?p=54055
10. US Commercial Service, Mexico country commercial guide: trade financing. https://www.trade.gov/country-commercial-guides/mexico-trade-financing
11. Atradius, B2B payment practices trends in Mexico, 2026. https://atradius.us/knowledge-and-research/reports/b2b-payment-practices-trends-in-mexico-2026
12. El Financiero, Dónde se fabrica la inteligencia artificial, July 11, 2026. https://www.elfinanciero.com.mx/opinion/enrique-quintana/2026/07/11/donde-se-fabrica-la-inteligencia-artificial/
13. EY Tax News 2026-0209, US Section 232 proclamation imposes 25 percent tariff on certain semiconductors, January 15, 2026. https://taxnews.ey.com/news/2026-0209-us-section-232-proclamation-imposes-25-percent-tariff-on-certain-semiconductors
14. 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

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.