Mexico City, Mexico — Facing a new round of tariffs on its exports to the United States, Mexican Economy Minister Marcelo Ebrard said Mexico will not respond with retaliatory measures, as most of its exports remain protected under the USMCA.
Starting July 24, the United States imposed new tariffs on imports from more than 60 countries, including Mexico. However, the United States-Mexico-Canada Agreement (USMCA) continues to shield most Mexican exports from the latest trade measures introduced by U.S. President Donald Trump.
“We have chosen not to escalate the conflict because if you impose tariffs, they will respond with higher tariffs or raise them even further. In the end, it is highly unlikely that you would prevail against the world’s largest economy,” Ebrard said.
According to the Economy Ministry, as much as 85% of Mexican exports are covered by the USMCA and are therefore exempt from the new tariffs, leaving only 15% of exports subject to the new U.S. duties.
However, Mexican exports that are not covered by the agreement were already subject to a 10% tariff under the extraordinary duties previously imposed by Trump under Section 122 of the Trade Act of 1974.
The new measure effectively replaces the previous one, meaning the tariff treatment remains unchanged.
The Trump administration had imposed a 10% tariff on imports from most of its trading partners under Section 122, a temporary measure that lasted up to 150 days and expired on July 24.
In its place, the administration shifted its tariff policy to Section 301 of the same law, which imposes a 10% tariff as a penalty on countries found to be trading goods produced with forced labor.
However, the move is part of the protectionist and nationalist trade agenda Trump has promoted since winning reelection.
“They call it reducing the trade deficit. We export more to the United States than we import from them. What the United States wants is for us to buy even more of their products while exporting less to them in order to reduce its trade deficit. That is their objective, even though we believe this does not harm their economy—quite the opposite, it benefits it,” President Claudia Sheinbaum said.
Featured image: Mexican Economy Minister Marcelo Ebrard
Image credit: Marcelo Ebrard via X.
