On July 23, 2026, the President of the United States, Donald J. Trump, issued a presidential memorandum directing the Office of the United States Trade Representative (USTR) to impose additional tariffs stemming from the Section 301 investigations under the Trade Act of 1974, initiated on March 12, 2026, with respect to 60 economies. These investigations concluded that each investigated economy —including Mexico— has failed to impose, or failed to effectively enforce, a prohibition on the importation of goods produced wholly or in part with forced labor.

As a result, the United States determined to impose differentiated additional tariffs by economy. Mexico falls within the group of economies subject to an additional 10% rate, although the measure includes relevant exceptions, among them an exclusion applicable to Mexican goods that enter the United States duty-free under USMCA. Below we summarize the most relevant aspects of this measure and its implications for trade between Mexico and the United States.

CHRONOLOGY OF THE MEASURE APPLIED BY THE UNITED STATES

• March 12, 2026: USTR initiated Section 301 investigations regarding 60 economies, to determine whether each had failed to prohibit, or to effectively enforce a prohibition on, the importation of goods produced with forced labor.
• June 2, 2026: USTR announced its determinations, concluding that the practices of the 60 economies are actionable under Section 301, and proposed differentiated tariffs, with exemptions for certain products.
• July 7, 8, and 9, 2026: USTR and the Section 301 Committee received public comments and held public hearings on the proposed actions.
• July 23, 2026: The President issued the presidential memorandum with the final determination of tariffs and exclusions.
• July 24, 2026: The HTSUS modifications took effect, applicable to goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. Eastern Time.

PRINCIPAL TARIFF MEASURES

TREATMENT APPLICABLE TO MEXICAN GOODS

New HTSUS heading 9903.05.55 establishes, as a general rule, an additional 10% tariff on goods that are products of Mexico. This tariff is in addition to the ordinary tariff otherwise applicable under the corresponding tariff classification, except where an exclusion applies.

HTSUS heading 9903.05.94 establishes a specific exclusion for goods that are products of Mexico entered duty-free under USMCA, including the treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS.

It is important not to confuse the fact that a good is exported from Mexico with compliance with USMCA rules of origin. A product being "a product of Mexico" for HTSUS purposes does not automatically mean it qualifies as a good originating under USMCA. To benefit from the exclusion, it will be necessary to confirm that the good qualifies for USMCA preferential treatment and that such treatment is correctly claimed at the time of importation.

MAIN EXCLUSIONS

The memorandum's Annex provides for, among others, the following general categories of exclusion:

• Products expressly identified by HTSUS tariff line (raw materials and goods for which the tariff could lead to unavailability of domestic supply or cause broad economic disruption).
• Articles of steel, aluminum, and copper (including derivatives), subject to other trade measures (Section232).
• Passenger vehicles and light trucks, and their parts.
• Medium- and heavy-duty vehicles, buses, and their parts.
• Certain wood products.
• Semiconductors under the corresponding heading.
• Civil aircraft, their engines, and parts.
• Products for pharmaceutical applications.
• Donations and informational materials.
• Mexican goods entered duty-free under USMCA (heading 9903.05.94).

IMMEDIATE IMPLICATIONS FOR TRADE BETWEEN MEXICO AND THE UNITED STATES

The measure may primarily affect:

• Goods exported from Mexico that do not qualify as originating under USMCA.
• Products for which USMCA preferential treatment is not correctly claimed at importation.
• Operations involving non-originating inputs or manufacturing processes insufficient to confer origin.
• Companies that lack complete, up-to-date origin files.
• Goods simultaneously subject to other measures under chapters 98 or 99 of the HTSUS.
• Commercial contracts that have not defined who bears the additional tariffs.
• Transfer pricing, import costs, margins, quotes, and delivery terms.

This measure does not automatically represent a 10% tariff on all Mexican exports, due to the exclusion applicable to goods entering duty-free under USMCA. However, each operation must be individually reviewed to confirm eligibility.

RECOMMENDATIONS FOR COMPANIES

• Identify the HTSUS tariff lines of products exported to the United States.
• Confirm whether goods qualify as originating under USMCA.
• Review applicable origin rules: tariff shifts, regional value content, and other requirements.
• Validate certificates or certifications of origin issued and received.
• Build complete origin files with BOM, costs, supplier declarations, and origin calculations.
• Confirm that the U.S. importer correctly claims USMCA preferential treatment (heading 9903.05.94, as applicable).
• Verify the Chapter 99 heading that must be declared on the customs entry.
• Review whether the product falls under a specific exclusion in the Annex.
• Analyze coexistence with Section 232 tariffs, automotive measures, antidumping, countervailing duties, or other trade measures.
• Review contracts, Incoterms, and price-adjustment clauses.
• Quantify the economic exposure for non-originating products.
• Coordinate the review with your customs broker or customs advisor in the United States.
• Monitor future modifications, exclusions, terminations, or adjustments that USTR may issue.

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.