USMCA, once again, becomes a lifeline for Mexican exports against the protectionist policy of the United States. The Ministry of Economy reported this Wednesday that goods complying with the rules of the North American trade agreement will be exempt from the possible application of the 10% tariff that Washington plans to impose for alleged violations of forced labor rules. In addition to Mexico, among the countries targeted by the Trump Administration are the European Union, the United Kingdom, China, India, Japan, Canada, among others.
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The Donald Trump government announced this Tuesday its intention to impose tariffs ranging from 10% to 12.5% on dozens of countries for alleged forced labor practice issues. The Trump administration claims this situation creates trade distortions for the United States. “It is unacceptable that our most important trading partners do not address the import of goods made with forced labor. This creates a dynamic where American workers are forced to compete globally under unequal conditions,” said Jamieson Greer, head of the US Trade Representative Office (USTR), in a written statement.
However, this Wednesday, Mexico’s Ministry of Economy clarified that trade complying with the USMCA, currently more than 85% of Mexican shipments, will be exempt from this possible tariff measure by Washington. Automotive, steel, and aluminum exports, which already pay sectoral tariffs, will also not be included.
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The process for the implementation of this tariff foresees a period of public consultation and claims, which could lead to some changes. The Mexican government assured that in the next 45 days it will hold talks with the USTR to demonstrate the actions the Latin American country has taken against forced labor. “Mexico trusts that the tariff proposal affecting 15% 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,” the agency mentioned.
The new wave of tariffs from Trump represents an additional challenge for Mexico amid the USMCA review process. The trade agreement will face its maximum trilateral review next July. This week, both the governments of Mexico and Canada have sent a letter requesting the renewal of the trade agreement for another 16 years. In the face of Trump’s recurring threats to blow up the treaty, the other partner countries have emphasized the importance of strengthening North American economic integration.
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