financetom
Economy
financetom
/
Economy
/
Mexico says USMCA-compliant exports would be exempt from US forced-labor tariffs
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Mexico says USMCA-compliant exports would be exempt from US forced-labor tariffs
Jun 3, 2026 8:39 AM

MEXICO CITY, June 3 (Reuters) - Mexico said on Wednesday that goods complying with the rules of origin under the United States-Mexico-Canada Agreement (USMCA) would be exempt from a proposed 10% U.S. tariff tied to an investigation into forced labor enforcement.

The Mexican Economy Ministry said the clarification came after consultations held with the Office of the U.S. Trade Representative (USTR). It added that roughly 85% of Mexico's exports to the United States qualify under USMCA rules of origin and therefore would not be subject to the proposed measure.

-- The USTR has proposed a 10% tariff on imports from Mexico and around a dozen other economies, including Canada, the European Union, Argentina and Britain, as part of an investigation alleging that 60 countries failed to effectively prevent imports of goods made with forced labor in third countries.

-- Another 45 economies would face additional duties of 12.5%.

-- Mexico said the proposal would also not affect goods already covered by Section 232 orders, including autos, steel and aluminum.

-- The ministry added that the proposed tariffs would not take effect immediately and instead would be subject to a 45-day consultation process.

-- During that period, Mexico will hold formal talks with the USTR, including a round led on the Mexican side by Economy Minister Marcelo Ebrard, to present information on the country's actions and commitments to combat forced labor.

-- Discussions over remaining roughly 15% of its exports that do not meet USMCA origin rules would continue over the coming weeks, the ministry said, and it expressed confidence that the proposed tariff treatment would be modified as a result of the bilateral talks.

-- The ministry added that, according to the U.S. government, the Section 301 investigation is part of a broader strategy to replace tariffs previously imposed under other authorities, including measures struck down by the U.S. Supreme Court and tariffs due to expire on July 24.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
No taxes on overtime, deregulation and more: What the Trump-Vance campaign is promising small businesses
No taxes on overtime, deregulation and more: What the Trump-Vance campaign is promising small businesses
Nov 4, 2024
Donald Trump has proclaimed himself a champion for small businesses, with promises to cut regulations, slash taxes and encourage economic and business growth by slashing inflation and federal spending. Trump's tenure as president has been seen as a mixed bag by many, with current president Joe Biden rolling back several of the decisions and executive orders put in place by...
Analysis-For dealmakers, regulatory chaos would undercut Trump's pro-business tilt
Analysis-For dealmakers, regulatory chaos would undercut Trump's pro-business tilt
Nov 4, 2024
NEW YORK/LONDON (Reuters) - With any other president, promises of less regulation and lower corporate taxes would have Wall Street's deal machine salivating at the prospect of a feeding frenzy. Not so with a potential Donald Trump presidency. That's because executives expect a Trump administration would also bring with it policy uncertainty, trade wars, protectionism, and inflationary pressures, which will...
Analysis-For dealmakers, regulatory chaos would undercut Trump's pro-business tilt
Analysis-For dealmakers, regulatory chaos would undercut Trump's pro-business tilt
Nov 4, 2024
NEW YORK/LONDON (Reuters) - With any other president, promises of less regulation and lower corporate taxes would have Wall Street's deal machine salivating at the prospect of a feeding frenzy. Not so with a potential Donald Trump presidency. That's because executives expect a Trump administration would also bring with it policy uncertainty, trade wars, protectionism, and inflationary pressures, which will...
Mohamed El-Erian's Warning To Presidential Hopefuls Is An Economic Reality Check: 'Big Gap' Between Campaign Promises And Ground Reality
Mohamed El-Erian's Warning To Presidential Hopefuls Is An Economic Reality Check: 'Big Gap' Between Campaign Promises And Ground Reality
Nov 4, 2024
Investors are remaining cautious amid uncertainties surrounding the upcoming presidential election between Donald Trump and Kamala Harris, according to prominent economist Mohamed El-Erian. What Happened: “A lot of investors are just on the sideline,” El-Erian, Chief Economic Adviser at Allianz, said during an interview on CBS’ “Face the Nation.” He cited multiple factors contributing to market uncertainty, including both the...
Copyright 2023-2026 - www.financetom.com All Rights Reserved