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U.S. Proposes Section 301 Tariffs and Mexico Secures T‑MEC Exemption for Most Exports

The USTR's preliminary plan targets imports tied to alleged forced labor and opens a 45‑day comment period that gives Mexico time to press legal and technical challenges.

Overview

  • The Office of the U.S. Trade Representative has proposed additional tariffs under Section 301 on imports from 60 economies with proposed rates of 10% for a subset including Mexico and 12.5% for a larger group.
  • After direct consultations, Mexico won a clarification that goods meeting T‑MEC rules of origin — about 85% of its U.S. export volume — would be exempt from the proposed 10% tariff.
  • The USTR action is preliminary and opens a roughly 45‑day administrative window with public comments due July 6 and a hearing on July 7 before any final decision is made.
  • Mexican officials will use the comment period and formal T‑MEC review rounds in mid‑June and July to submit legal and technical evidence focused on the roughly 15% of exports not covered by T‑MEC rules and at risk of tariffs.
  • The move reflects a U.S. strategy to use Section 301 after other tariff tools faced legal or expiry problems and could change how Washington pressures trade partners over forced‑labor enforcement and supply‑chain rules.