Mexico City, Mexico — Faced with new tariffs on exports to the United States, Mexican Economy Minister Marcelo Ebrard said Mexico would not respond with retaliatory measures because most exports are protected under USMCA.
Since July 24, the United States has imposed new tariffs on imports from more than 60 countries, including Mexico. However, the United States-Mexico-Canada Agreement (USMCA) continues to protect most Mexican exports from the latest trade measures introduced by U.S. President Donald Trump.
“We decided not to escalate the conflict because if we impose tariffs, they will respond with higher tariffs or raise them further. Ultimately, there is little chance of victory against the world’s largest economy,” Ebrard said.
According to the Department of Economic Affairs, up to 85% of Mexican exports are subject to USMCA and therefore exempt from the new tariffs, while only 15% of exports are subject to new US tariffs.
However, a 10% tariff was already imposed on Mexican exports not covered by the agreement under the special tariff imposed by President Trump under Section 122 of the Trade Act of 1974.
The new action effectively replaces the previous action. This means that your customs treatment will remain unchanged.
The Trump administration imposed a 10% tariff on imports from most trading partners under Section 122, a temporary measure that lasted up to 150 days and expired on July 24.
Instead, the government shifted its tariff policy to Section 301 of the same law, which imposes a 10% tariff on countries found to be trading goods produced through forced labor.
But the move is part of a protectionist and nationalist trade agenda that Trump has pursued since his re-election.
“They call it trade deficit reduction. We export more to the United States than we import. What the United States wants is to buy more products from the United States and export less to reduce the trade deficit. That is their goal. We believe this does not harm the American economy, but on the contrary, it benefits it,” said President Claudia Sheinbaum.
Featured image: Mexican Economy Minister Marcelo Ebrard
Image credit: Marcelo Ebrard (X)
