USMCA is the only U.S. treaty that exempts tariffs: Ebrard

The Mexico-U.S.-Canada Agreement (USMCA) is the only U.S. free trade agreement that maintains an exemption on products, highlighted Marcelo Ebrard, Secretary of Economy.

This exemption applies only to goods that comply with the treaty's own rules of origin.

The United States operates 14 free trade agreements and, with the exception of Mexico and Canada, U.S. customs will apply a general base tariff of 10%.

At Thursday's press conference with President Claudia Sheinbaum at the National Palace, Ebrard indicated the reciprocal tariffs that the United States will charge countries with which it has free trade agreements, which imply a rate higher than the base tariff: South Korea (25%), Jordan (20%), Nicaragua (18%) and Israel (17%).

He also mentioned the sectors in which Mexican exports currently pay no tariffs: agri-food, electronics, electrical, chemical, clothing, footwear, medical devices, pharmaceuticals and machinery and equipment.

Ebrard expounded that if tariffs had not been avoided, the consequent question would be that the USMCA does not operate. “The USMCA remains in place,” he stressed.

However, on Mexico and Canada, the United States applies tariffs of 25% on imported automobiles, effective April 3, 2025, and 25% on certain auto parts, effective May 3 at the latest (the exact date will be announced in a future notice).

Additionally, last Monday, February 10, Trump reactivated, on national security grounds, Section 232 tariffs, to impose a 25% tariff on all U.S. steel and aluminum imports as of March 12, 2025, eliminating exemptions for countries such as Canada, Brazil, Japan and Mexico, as well as the European Union.

Ebrard said that in the next 40 days Mexico will seek better tariff treatment from the United States on autos, steel and aluminum. To that end, he will make a new visit to Washington to negotiate with his counterparts.

“Mexico has to achieve a better preferential treatment; it means that we have the best conditions to compete. How to make what Mexico exports competitive with any other country,” he said.

The White House noted Wednesday that in the event the current fentanyl/migration orders are rescinded, USMCA-compliant products will continue to receive preferential treatment, while non-compliant products will be subject to a reciprocal tariff of 12%.

So far, cars exported from Mexico to the United States pay a 25 percent tariff if they do not comply with the USMCA, discounting U.S. content; while no auto parts are subject to tariffs, until the U.S. Secretary of Commerce establishes a methodology to disregard U.S. content.