How Mexico Is Responding to Trump's Tariff Policy

Mexican Economy Minister Marcelo Ebrard confirmed on Friday (24/7) that his government will not impose retaliatory tariffs in response to United States President Donald Trump’s launch of a new wave of trade duties against various countries. “We chose the path of not escalating the conflict because if you impose tariffs, they will impose higher tariffs or raise existing ones, and it is very unlikely that you can ultimately defeat the world’s largest economy,” Ebrard told Formula Noticias.

The Trump administration imposed new tariffs on 60 economies under Section 301 of the US Trade Act of 1974, which aims to prohibit the import of goods produced using forced labour. Starting Friday, countries trading with the United States are no longer governed by Section 122, which previously allowed additional charges to address fundamental international payment issues, and are now subject to tariffs under the newly applied Section 301.

Under the new scheme, Mexico will face a 10% tariff on its exports. However, as the largest trading partner and closest neighbour of the United States, Mexico gains protection through the United States-Mexico-Canada Agreement (USMCA), which shields approximately 85% of Mexican exports from tariffs. The 10% tariff stipulated in the trade law will only apply to exports outside the scope of the USMCA. These commodities were previously also subject to tariffs under Section 122, meaning Mexican exports will not face additional duties due to the new policy ordered by Trump.

“The decision to raise tariffs is a unilateral decision by the United States government and is not only aimed at Mexico, but at all countries in the world. What we are seeking is to maintain a more advantageous position compared to other countries. Currently, we still have it because 80% of our exports are not subject to any tariffs,” said Mexican President Claudia Sheinbaum during a press conference on Friday.