US policy moves reshape AI supply chain

Washington is moving on multiple fronts to reshape AI and defense supply chains. AI companies including Nvidia and Mistral are urging policymakers to avoid broad restrictions on open-weight AI models as the administration debates responses to Chinese AI development and alleged model distillation. The industry pushback comes as the Pentagon tightens supply chain rules for drone dominance, reflecting broader concerns about technology security and control. Meanwhile, the US and Mexico are preparing for a fourth round of USMCA talks amid persistent differences over key trade issues. The convergence of these policy moves suggests Washington is taking a more systematic approach to controlling critical technology supply chains, from AI models to defense hardware. The timing matters as both commercial and defense sectors face increasing pressure to secure supply chains while maintaining innovation competitiveness.