Overview
- The Office of the U.S. Trade Representative announced tariffs on 60 countries that move from the temporary Section 122 duty to a permanent Section 301 scheme, with the new measures set to take effect July 24.
- Mexico was assigned a 10% tariff rate under the program, but the USTR and Mexico’s Secretaría de Economía confirmed that exports meeting T‑MEC rules of origin—about 85% of Mexican shipments to the U.S.—will remain duty‑free.
- President Claudia Sheinbaum met USTR Jamieson Greer in Mexico City during the third round of T‑MEC talks, and both sides called the discussions constructive and agreed to additional negotiation rounds to continue resolving outstanding issues.
- U.S. officials built broad exemptions into the tariff plan to protect supply chains and avoid shortages, excluding certain raw materials, critical inputs, agriculture and goods that would cause economic disruption if taxed.
- USTR says complex items such as rules of origin, labor enforcement and environmental standards will require months of talks that could stretch into 2027, leaving firms that do not meet T‑MEC criteria exposed to higher costs in the near term.