Mexico Retains Preferential Access Under USMCA Despite New U.S. Forced Labor Tariffs.
The Office of the U.S. Trade Representative (USTR) on July 23, 2026, imposed additional tariffs of 10 percent or 12.5 percent on imports into the United States from 60 economies, following investigations initiated under Section 301 of the Trade Act of 1974 regarding the alleged failure to adopt or effectively enforce prohibitions on the importation of goods produced with forced labor. Mexico was assigned a rate of 10 percent.
However, the measure does not constitute an additional blanket tariff on all Mexican exports destined for the U.S. market. According to the USTR's official notice, Mexican products that qualify for duty-free treatment under the United States-Mexico-Canada Agreement (USMCA) are excluded from this tariff. Accordingly, goods that comply with the rules of origin and for which preferential treatment is properly claimed under the USMCA generally retain their zero-tariff rate.
According to the Mexican government, the 10 percent tariff applicable to products that do not receive preferential treatment under the USMCA replaces the additional 10 percent duty that the U.S. had previously imposed on those goods under Section 122. Therefore, the new tariff does not represent a cumulative additional burden relative to the tariff conditions that were in effect immediately before the announcement. The principal novelty lies in the legal basis of the new measure (Section 301 and the forced labor investigation) rather than an increase or accumulation of the effective rate applicable to Mexican exports.
Mexican President Claudia Sheinbaum stated that the country broadly retains the same tariff conditions that were in effect before the announcement. She explained that the 10 percent tariff established under Section 301 replaces the general framework previously applied by the U.S. for non-USMCA products.
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There are numerous exceptions and exclusions from the new Section 301 tariffs, which importers should closely assess to determine whether their products qualify:• Excluded products listed in Annexes: detailed lists of excluded products organized by Harmonized Tariff Schedule of the U.S. (HTSUS) code are included in the Annexes to the Federal Register notice, including certain agricultural products, aerospace inputs, and select metals (among other items).• Goods imported from Canada and Mexico that comply with the U.S.-Mexico-Canada Agreement (USMCA).• Goods covered by separate duties under Section 232 of the Trade Expansion Act of 1962 (e.g., certain steel or aluminum products and automobile parts, among other items).• CAFTA-DR textiles and apparel: Certain articles entering duty-free from Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua under the Dominican Republic-Central America-United States Free Trade Agreement.
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