Key facts
- Several Latin American countries are seeking exemptions from proposed U.S. tariffs related to forced labor allegations.
- Mexico, Peru, Guatemala, and Ecuador stated they are actively combating forced labor in their supply chains.
- Steelmakers are requesting exemptions for imported pig iron, a key component in steel production.
- The U.S. Trade Representative (USTR) is reviewing public comments on the proposed tariffs.
- Brazil's Senator Flavio Bolsonaro previously argued against proposed U.S. tariffs on Brazilian goods.
Several Latin American countries and steelmakers are urging the Trump administration to exempt them from proposed U.S. tariffs, arguing that the duties unfairly punish compliant companies and consumers. During a public hearing on the U.S. Trade Representative's (USTR) proposed tariffs on 59 countries and the European Union, ministers and representatives from Mexico, Peru, Guatemala, and Ecuador rejected allegations that they are failing to enforce laws against forced labor in their supply chains. They asserted that they have laws and processes to combat the problem. Mexico's Economy Ministry stated that an additional 10% tariff would unjustly punish thousands of law-abiding Mexican companies. Peru requested exemption, arguing no concrete burden on U.S. commerce had been established. Separately, Brazilian Senator Flavio Bolsonaro had previously argued against proposed U.S. tariffs on Brazilian goods. Some steelmakers and trade groups also argued for an exemption for imported pig iron, a key material for steel production, warning that combined tariffs could disadvantage domestic steel production. The USTR is expected to consider public comments before issuing a final determination on the proposed tariffs and any exemptions.