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 >
BlackRock CEO Larry Fink Warns 'Many Already Believe The US Is In A Recession'
BlackRock CEO Larry Fink Warns 'Many Already Believe The US Is In A Recession'
Apr 7, 2025
BlackRock CEO Larry Fink warned that financial markets could face an additional 20% decline, but emphasized that the current correction presents a long-term buying opportunity rather than a signal to exit positions. What Happened: Speaking at the Economic Club of New York on Monday, Fink said the downturn is not indicative of systemic financial risk. “I see it more as...
Fed's Goolsbee says there's a lot of anxiety over tariffs
Fed's Goolsbee says there's a lot of anxiety over tariffs
Apr 7, 2025
(Reuters) - Chicago Federal Reserve Bank President Austan Goolsbee on Monday said businesses are anxious about U.S. President Donald Trump's tariffs but that the central bank would need to look at hard data in its policy response. The anxiety is if these tariffs are as big as what are threatened on the U.S. side, and if there's massive retaliation, and...
China sticks to its guns as fresh US tariff threat pushes tensions to the brink
China sticks to its guns as fresh US tariff threat pushes tensions to the brink
Apr 8, 2025
* China vows 'fight to the end' if US hikes tariffs further * Trump threatens China with additional 50% duty * Tariffs make for battle of wills, not economics, analyst says By Joe Cash and Nicoco Chan BEIJING/SHANGHAI, April 8 (Reuters) - China vowed on Tuesday to fight to the end against U.S. tariffs as some citizens railed against President...
Fintech companies caught up in tariff turmoil
Fintech companies caught up in tariff turmoil
Apr 7, 2025
(Reuters) -Financial technology companies like Robinhood and buy now, pay later provider Affirm have been caught in the whirlwind of President Donald Trump's sweeping tariffs, sending shares sharply downward amid fears about worsening consumer finances. Global markets have been battered since Trump last week introduced a new baseline 10% U.S. tariff on goods from all economies. Investors fear that the...
Copyright 2023-2026 - www.financetom.com All Rights Reserved