World June 3, 2026 10:27 AM

Mexico Seeks Changes to Proposed U.S. Tariff on Goods Linked to Forced Labor

Mexican government to press for tariff revisions in USMCA bilateral talks during a 45-day consultation window

By Sofia Navarro

Mexico indicated it expects Washington to alter a proposed 10% tariff on certain imports tied to allegations of forced labor. The Mexican Ministry of Economy said the U.S. measures remain a proposal subject to a 45-day consultation period and that Mexico will make its case during bilateral discussions under the United States-Mexico-Canada Agreement (USMCA). The U.S. Trade Representative has proposed 10% duties on several named economies and 12.5% duties on 45 other countries it reviewed.

Mexico Seeks Changes to Proposed U.S. Tariff on Goods Linked to Forced Labor

Key Points

  • Mexico expects the United States to modify a proposed 10% tariff tied to forced labor allegations and says the measure is still a proposal pending consultations - impacts trade and exports.
  • The U.S. Trade Representative proposed 10% duties on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Britain.
  • The USTR also proposed 12.5% duties on an additional 45 countries reviewed; Mexico will present its case during bilateral USMCA discussions - sectors affected include manufacturing, export-oriented industries, and trade logistics.

MEXICO CITY, June 3 - Mexican authorities said they expect the United States to revise a proposed 10% tariff on goods the U.S. links to forced labor, and that any change will follow a formal consultation process. In a statement published late on Tuesday, the Mexican Ministry of Economy emphasized that the tariffs announced by the U.S. remain a proposal and are not yet finalized.

The ministry noted that a 45-day process of consultations and discussions will take place before any tariffs become final. During that period, Mexico plans to present arguments aimed at avoiding the proposed duties as part of the bilateral discussions that form a component of the review of the United States-Mexico-Canada Agreement - USMCA - according to the ministry's statement.

The Office of the United States Trade Representative announced proposed duties of 10% on imports from a group of named jurisdictions including Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Britain. The USTR also indicated it would impose additional duties of 12.5% on the remaining 45 countries included in its investigation.

Mexico's response underscores its intention to use the structured review mechanisms of USMCA to argue against the tariff measures. The ministry's statement framed the U.S. measures as still provisional and subject to the upcoming consultations.

For now, the measures announced by the USTR are proposals pending the 45-day window of consultations and discussions. Mexico's strategy, as described by its Ministry of Economy, will be to present case materials and arguments in the bilateral portion of the USMCA review to seek exemption from or modification of the proposed 10% duty.

The announcement by the USTR also set out a parallel approach for a broader group of countries. In addition to the listed economies facing a proposed 10% duty, the USTR said it would apply 12.5% duties to the remaining 45 countries that were part of the investigation process. The Mexican statement did not add further details on the specific arguments Mexico will advance during the bilateral discussions.

With the matter remaining in a consultation phase, outcomes will depend on the exchanges that occur over the set 45-day period and the bilateral review under USMCA.

Risks

  • Uncertainty over final tariff outcomes while the 45-day consultation process unfolds - trade and export sectors face short-term regulatory uncertainty.
  • If the proposed duties are not modified, exporters in impacted countries could face higher costs, affecting manufacturing and supply-chain economics.
  • Bilateral USMCA discussions may not yield exemptions or changes, leaving export-reliant sectors exposed to potential new duties.

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