U.S. President Donald Trump announced on March 6, 2025, that the imposition of the 25 percent tariffs applied from the U.S. to Mexican products on March 4, 2025, will have an exemption until April 2, 2025, for the products that meet the specific United States-Mexico-Canada Agreement (USMCA) rules of origin. These products qualify as "USMCA origin" and are imported into the U.S. using a certificate of origin.
It is important to note that the 25 percent tariffs are still in place for the Mexican products imported into the U.S. without an USMCA certificate of origin.
Therefore, companies with operations in Mexico must assess the impact of these tariffs on their costs and supply chains. Key considerations that companies must take into account include:
- USMCA compliance: Evaluation of applicable rules of origin labor provisions and customs procedures in order for the products to qualify as USMCA origin and possible adjustments in the supply chain to achieve it.
- Tariff strategies: Optimization of supply chains to minimize costs and evaluation of origin alternatives in case that the products do not qualify as USMCA origin.
- Exploration of alternative regimes: Analysis of import and export regimes, such as bonded warehousing, to assess their feasibility and potential benefits.
- Contract review: Evaluation of current trade agreements to identify adjustments that reduce costs.
- Trade defense: Representation in trade disputes and negotiations to mitigate adverse impacts.
- Lobbying: Working with the government to find the best strategies and solutions to problems.
