Mexico Faces Steep 45% US Tariffs in 2025 Trade Dispute: USMCA Compliance Key to Avoiding Massive Import Duties
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Mexico Faces Steep 45% US Tariffs in 2025 Trade Dispute: USMCA Compliance Key to Avoiding Massive Import Duties
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Products exported from Mexico that don't qualify as originating under USMCA provisions are currently subject to a 25% tariff, a policy that took effect on February 4, 2025. This represents a substantial trade barrier for non-compliant Mexican goods entering the US market.
On March 4, the Trump administration amended these tariffs to increase the rate to an additional 20% tariff on all Mexican goods. Importantly, the de minimis exemption for Mexican imports is no longer available as of May 2, meaning even small-value shipments now face these substantial duties.
For Mexican exporters, there's a critical distinction to note - goods that comply with USMCA requirements remain exempt from these additional tariffs. This creates a strong incentive for Mexican businesses to ensure their products meet USMCA origin requirements to maintain competitive pricing in the US market.
The administration has also implemented what they call "unstacking" of certain tariffs. Products subject to the Mexico IEEPA tariffs will not be subject to additional aluminum or steel tariffs under Section 232. However, these products may still be subject to other sector-specific duties.
The White House justified these tariff measures in February, with President Trump stating they address what he called "the national emergency posed by the large and persistent trade deficit" and "the absence of reciprocity" in US trade relationships.
These tariffs are part of a broader trade policy that has also targeted Canada and China with similar measures. Notably, China now faces an even steeper tariff rate of 125% on most goods, implemented in early April.
For Mexican businesses and American importers, navigating this complex tariff landscape requires careful attention to product origin rules and compliance with USMCA provisions to minimize duty exposure.
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