Mexico to be exempt from the U.S. additional 10% tariff

The proposed tariff was introduced as part of an investigation related to compliance with laws aimed at preventing forced labor.

According to a statement from Mexico’s Ministry of Economy, the decision followed consultations with the Office of the United States Trade Representative (USTR). The ministry noted that approximately 85% of Mexico’s exports to the United States comply with USMCA rules of origin, meaning that the proposed tariff would largely exclude Mexican exports from its scope.

On the U.S. side, the proposed measure would apply to imports from roughly a dozen economies, including Mexico, Canada, the European Union, Argentina, and the United Kingdom. The initiative is part of an investigation alleging that 60 countries have failed to adequately prevent the import of goods produced through forced labor in third countries.

In addition, another 45 economies could face an additional tariff of 12.5% under the proposal. It was also emphasized that the measure would not affect products already subject to U.S. Section 232 tariffs, including automobiles, steel, and aluminum.

Mexico’s Ministry of Economy further stated that the proposed tariffs will not take effect immediately and will instead be subject to a 45-day consultation period before any final decision is made.