MEXICO · TARIFFS AND THE USMCA
Key Facts
- New duty: 10% on Mexican goods outside the USMCA trade pact, in force since Friday 24 July 2026.
- Exempt: Goods that qualify under the USMCA, and goods already hit by steel, aluminum or auto duties.
- Separate duties: Steel, aluminum, cars and parts pay 25% to 50%, depending on the product.
- Trade at stake: US goods imports from Mexico were US$534.3 billion in 2025, against US$337.3 billion of exports.
- Next step: The US trade office takes public comments on the 2027 USMCA review until Tuesday 12 January 2027.
- Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 70.8 points (November 2026 edition).
US tariffs on Mexico did not change with the American midterm elections of Tuesday 3 November 2026. A 10% duty on Mexican goods outside the USMCA trade pact stays in force, and so do separate duties on steel, aluminum and cars.
For US readers, that means prices for Mexican-made goods rest on trade rules and executive powers, not on who wins seats in Congress. The next real test is the 2027 review of the USMCA, the pact that joins the United States, Mexico and Canada.
What Is in Force Today
The newest duty came on Thursday 23 July 2026, when the US Trade Representative (USTR), the White House trade office, taxed imports from 60 economies. It used Section 301, a trade-law tool against alleged unfair practices, and the duties took effect on Friday 24 July.
Mexico and Canada got the lowest rate, 10%, while most other economies face 12.5%. USTR argues those countries do not effectively ban imports made with forced labor.
The 10% Duty and the USMCA Exemption
The 10% duty does not apply to goods that qualify for duty-free treatment under the USMCA. Mexico’s government says the new rate simply replaced a temporary 10% surcharge on non-USMCA goods, so the burden did not rise.
That earlier surcharge expired on 24 July after the US Supreme Court struck down an older tariff law. Goods loaded on a ship before 24 July and entered before Tuesday 28 July were spared.
Steel, Aluminum and Cars Pay More
Products already taxed under Section 232, a law covering national-security tariffs, are excluded from the new 10% duty but are not duty-free. These include many steel, aluminum, auto and auto-parts goods, with rates between 25% and 50% depending on the product.
Mexico is pressing for cuts on steel and cars, and talks continue sector by sector. Our report on Trump’s remark that a Mexico tariff deal is close shows that no text has been published.
How the USMCA Review Works
On Friday 2 October 2026, USTR opened a public consultation on the 2027 joint review of the USMCA, as directed by Congress. Comments and requests to speak at a hearing are due by late evening on Tuesday 12 January 2027.
The notice appeared in the Federal Register, the US government’s daily journal of rules, on Monday 5 October. Our overview of how the pact faces yearly US reviews explains the wider timeline.
Labor Cases Add Pressure
On Monday 2 November 2026, USTR asked Mexico to review claims that workers at Madobox, a box maker in Uruapan, Michoacán, were denied union rights. It used the USMCA’s rapid-response labor tool, which lets the US act against a single factory.
Mexico has 10 days to agree to a review, and a review would run 45 days from 2 November. The company has said its layoffs stem from the avocado crisis, as we report in our Madobox story.
In Plain English, Who Is Who
The USMCA is the 2020 trade pact between the US, Mexico and Canada, called T-MEC in Mexico. USTR is the White House office that negotiates trade deals and sets Section 301 duties.
Section 301 and Section 232 are two US laws that let the president tax imports without a vote in Congress. Congress writes trade law, but changing these duties would need a new law or the president’s agreement.
What It Means for You
Importers of USMCA-qualifying Mexican goods see no new duty, but they should keep proof of origin ready. Buyers of Mexican steel, aluminum or cars still face the higher separate rates.
Investors in Mexican stocks and the peso should watch the USMCA review and any steel or car deal, not congressional headlines. Our report on Mexico’s trade shield after the vote covers what a new Congress can and cannot do.
What Is Not Known
It is not known whether the new Congress will try to limit tariffs, or whether the president would sign such a law. Final midterm counts are still being certified by state election offices.
No date is set for the USMCA hearing, and no text of a US-Mexico steel or car deal has been published. How USTR will treat the 10% duty in the review is also open.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
Did the midterm elections change US tariffs on Mexico?
No, the 10% Section 301 duty and the separate steel, aluminum and auto duties rest on presidential powers. A change would need the president or a new law.
Which Mexican goods pay the 10% US duty?
Goods that do not qualify for duty-free treatment under the USMCA pay it, since 24 July 2026. USMCA-qualifying goods and goods already under Section 232 duties are excluded.
How high are US tariffs on Mexican steel and cars?
Section 232 duties on steel, aluminum, autos and parts range from 25% to 50%, depending on the product. These rates are separate from the 10% duty.
When is the USMCA review?
USTR is taking public comments on the 2027 joint review until 12 January 2027. It has not given a hearing date.
Sources: Office of the US Trade Representative, press release on public comment for the 2027 USMCA joint review, Friday 2 October 2026; Office of the US Trade Representative, Section 301 forced-labor action on 60 economies, Thursday 23 July 2026; Office of the US Trade Representative, USMCA labor request on Madobox, Monday 2 November 2026; US Census Bureau, trade in goods with Mexico, 2025.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error