On July 23, 2026, it was reported that Mexico has accelerated the technical reviews of the United States-Mexico- Canada Agreement — USMCA — in a context of greater trade uncertainty and amid the adoption of new tariff measures by the United States.
These reviews are part of the process provided under Article 34.7 of the USMCA. Although the Agreement remains in force, Mexico, the United States and Canada will carry out annual reviews, since an automatic 16-year extension under the current terms was not agreed upon.
Additionally, on July 23, 2026, the White House issued a memorandum addressed to the United States Trade Representative — USTR — related to investigations under Section 301 of the Trade Act of 1974, regarding the acts, policies and practices of 60 economies related to the failure to prohibit or effectively enforce prohibitions on the importation of goods produced wholly or in part with forced labor.
Among the most relevant aspects, the following stand out:
1. Annual review of the USMCA
The review formally began in July 2026, within the framework of the Fifth Meeting of the Free Trade Commission of the Agreement. This process does not imply the termination of the USMCA or the suspension of its benefits, but it could result in technical adjustments or changes in the interpretation of certain provisions.
Operational Impact:
Companies with operations in North America should follow up on the progress of the review in order to anticipate possible regulatory or operational changes.
2. Actions by the United States under Section 301
According to the White House memorandum, USTR initiated investigations on March 12, 2026, regarding 60 economies, including Mexico, to analyze whether such economies do not prohibit or do not effectively enforce a prohibition on the importation of goods produced with forced labor. Subsequently, on June 2, 2026, USTR determined that certain acts, policies and practices of such economies are actionable under Section 301.
In the case of Mexico, the USTR notice states that it determined that Mexico has failed to effectively enforce such prohibition, and therefore determined to impose an additional 10% tariff on products of Mexico, except for the exclusions provided in the notice itself and its annexes.
Operational Impact:
Mexican exporting companies should assess whether their products could be subject to this additional tariff, particularly when the goods do not qualify or are not properly declared under USMCA preferential treatment.
3. Exception for goods with USMCA preferential treatment
The USTR notice provides that the additional tariffs applicable to products of Mexico will not apply to Mexican goods entered duty-free under the USMCA, including certain treatments provided under Chapters 98 and 99 of the HTSUS.
Operational Impact:
The highest risk is concentrated in operations that do not qualify as originating, do not properly claim USMCA tariff preference, or do not have sufficient supporting documentation to prove origin.
4. Entry into force of the additional tariffs
Pursuant to the USTR notice, the additional tariffs apply to goods entered for consumption, or withdrawn from warehouse for consumption, as of 12:01 a.m. Eastern Time on July 24, 2026. Likewise, a limited exception is provided for goods loaded at the port of loading and in transit before such time, provided that they are entered before 12:01 a.m. Eastern Time on July 28, 2026.
Operational Impact:
Companies should review shipments in transit, entry dates, customs documentation and origin declarations, in order to identify potential impacts on costs, customs clearance and compliance.
5. Sensitive sectors and supply chains
The measure is issued in a context of trade pressure on strategic sectors, including steel, aluminum, automotive, auto parts, manufacturing and supply chains highly integrated with North America.
Operational Impact:
Companies should review the traceability of their inputs, suppliers and production processes, especially when materials from third countries are involved or when supply chains are exposed to labor, origin or documentary compliance risks.
Recommendation:
We suggest that companies with operations under the USMCA and exports to the United States carry out a preventive review of their operations, considering the following:
- Confirm compliance with USMCA rules of origin.
- Validate that tariff preference is properly claimed upon importation into the United States.
- Update origin files and supporting documentation.
- Review the tariff classifications of products exported to the United States and Canada.
- Identify operations that may not qualify as originating under the USMCA.
- Assess supply chain exposure to inputs from third countries.
- Review shipments in transit and operations after July 24, 2026.
- Follow up on possible adjustments, exclusions or modifications issued by USTR.
Based on the foregoing, it is advisable to strengthen internal controls related to origin, tariff classification, documentary traceability and supply chain due diligence, in order to continue taking advantage of benefits under the USMCA and reduce risks arising from new tariff measures by the United States.
J.A. DEL RÍO offers a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your project complies with the applicable characteristics contained in this agreement.
If you have any questions, J.A. DEL RÍO can provide you with our experts to advise in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.
