La Jornada: US tariff for forced labor will not affect Mexico, says Economía

National goods that comply with the rules of origin of the United States, Mexico and Canada Agreement (USMCA) would be exempt from the additional 10 percent tariff that the Office of the United States Trade Representative (USTR) proposed to apply to countries that it considers to be importing goods produced under “forced labor.”

In a statement, the Ministry of Economy (SE) confirmed this scope after holding direct consultations with the USTR early this Wednesday.

According to the agency, around 85 percent of the volume of Mexican exports to the United States complies with the rules of origin of the T-MEC, so it would be excluded from the proposed measure.

This proportion represents a significant jump compared to the levels prior to Donald Trump’s tariff escalation, given that in February 2025, before the first United States tariffs came into force, only 48.6 percent of Mexican exports complied with said rules of origin, according to data from various financial institutions.

In just over a year, thousands of companies adjusted their supply chains to certify the origin of their products under the treaty and thus be exempt from the 25 percent tariffs, boosting compliance to the current level.

The SE explained that the assets included in orders 232, which include cars, steel and aluminum, would not be affected either. Meanwhile, the remaining 15 percent of Mexican exports, he said, could be exposed to the tax.

However, for that segment, the agency will hold formal conversations with the USTR during the next 45 days – the period considered by the consultation process opened by the proposal – in which Mexico will present information on its actions and commitments in combating forced labor. These negotiations will be headed by Secretary Marcelo Ebrard.

The USTR proposal arose from an investigation conducted under Section 301 of the Trade Act of 1974, which singles out 60 economies – including Mexico, the European Union, Canada, Argentina and the United Kingdom – for failing to effectively apply their mechanisms to prohibit the importation of goods produced with forced labor in third countries. An additional tariff of 10 percent corresponds to that group, while a tax of 12.5 percent is proposed for the remaining 46 economies.

Strategy

The SE stressed that the measure is related to a strategy by Washington to replace the tariffs imposed through the International Emergency Economic Powers Act, which reached 25 percent and were annulled by the Supreme Court. It would also seek to replace the Section 122 tariffs, which expire on July 24.

“Mexico is confident that the tariff proposal that affects 15 percent of its trade will be modified based on the results of the bilateral discussion tables that Mexico and the United States will continue to hold in the coming weeks,” he concluded.