Key facts
- Mexico's Economy Minister Marcelo Ebrard stated new U.S. tariffs will not change the effective tariff rate for Mexico.
- Approximately 85% of Mexican exports to the U.S. will remain tariff-free due to USMCA exemptions.
- New U.S. tariffs are set to take effect as prior tariffs expire, applying to the same 10% of goods.
- The USMCA review process is underway, with technical teams from both countries meeting.
- U.S. Trade Representative Jamieson Greer expects provisional USMCA agreements by the end of 2026, with complex issues extending into 2027.
Mexico's Economy Minister Marcelo Ebrard stated that the country anticipates no change in its effective tariff rates despite the U.S. government's announcement of new tariffs on approximately 60 trading partners. Ebrard explained that exemptions under the U.S.-Mexico-Canada Agreement (USMCA) will ensure that about 85% of Mexican exports to the United States continue to enter duty-free.
According to Ebrard, a further 10% of goods were subject to Section 122 of the Trade Act of 1974, a measure set to expire on Friday. The newly announced duties will apply to this same 10% of goods as the prior measure expires, effectively maintaining the existing tariff treatment for these items.
Mexican President Claudia Sheinbaum indicated that her administration has been actively engaged in discussions, having attended a hearing in Washington to argue against new tariffs on Mexican goods. U.S. Trade Representative Jamieson Greer, meanwhile, anticipates provisional agreements on the USMCA review by the end of 2026, though more complex negotiations concerning rules of origin and labor commitments are expected to continue through 2027. Greer also suggested that the USMCA review's progress could be contingent on Mexico's cooperation in other bilateral areas, such as the water treaty.