Listeners, today’s top story in Mexico Tariff News and Tracker is the continuation of major tensions and uncertainty around US-Mexico trade, as President Trump’s tariff policies continue to shape the economic relationship between these two North American giants.
On July 31st, President Trump issued an executive order that included sweeping new tariff increases targeting dozens of U.S. trading partners, but Mexico secured a crucial temporary lifeline. According to legal analysis from national trade consultancies, Trump announced a 90-day pause on imposing a threatened 30% tariff on all Mexican-origin goods. For now, the existing 25% IEEPA-based tariff rate remains in place, but only for the small fraction of Mexico’s exports to the US not covered by the United States-Mexico-Canada Agreement, or USMCA.
This is a pivotal point for our listeners: most goods that comply with USMCA, which replaced NAFTA in 2020, continue to move across the border tariff-free. USMCA requires products to be substantially made in Mexico or Canada, not merely repackaged imports from elsewhere, to qualify for favorable treatment. The Mexican government reports that over 84% of its trade with the US is shielded by the trade pact, meaning most Mexican exports reach US shelves without extra duties.
However, key exceptions remain. Autos, steel, and aluminum products face separate tariffs and are not fully protected by the USMCA. For other categories, the 25% tariff, introduced as part of a broader effort to address the flow of fentanyl across the border, was implemented back in March and continues unless a fresh agreement is reached within the current negotiating window. This distinct “IEEPA tariff” will hit only the minority of cross-border trade not compliant with USMCA requirements.
Trump’s latest executive order was part of a broader pattern of using tariffs as a negotiation tool. While the US has concluded new and lower reciprocal tariffs with several Asian and European partners, the administration remains locked in complex and sensitive negotiations with both Mexico and China. The White House has indicated that preserving the free trade pact is critical, but Commerce Secretary Howard Lutnick recently signaled that Trump is “absolutely going to renegotiate USMCA” when it comes up for review next year—a move that could unsettle current exemptions and business planning.
Right now, listeners should note that supply chain planners in both nations are adapting by meticulously tracking rules-of-origin compliance, since any misstep could expose them to the 25% tariffs and potentially even more if new agreements aren’t reached after this 90-day extension.
That’s the latest on Mexico tariff news and current US trade policy drama. Thank you for tuning in and don’t forget to subscribe for our next update. This has been a quiet please production, for more check out quiet please dot ai.
For more check out https://www.quietperiodplease.com/
Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
On July 31st, President Trump issued an executive order that included sweeping new tariff increases targeting dozens of U.S. trading partners, but Mexico secured a crucial temporary lifeline. According to legal analysis from national trade consultancies, Trump announced a 90-day pause on imposing a threatened 30% tariff on all Mexican-origin goods. For now, the existing 25% IEEPA-based tariff rate remains in place, but only for the small fraction of Mexico’s exports to the US not covered by the United States-Mexico-Canada Agreement, or USMCA.
This is a pivotal point for our listeners: most goods that comply with USMCA, which replaced NAFTA in 2020, continue to move across the border tariff-free. USMCA requires products to be substantially made in Mexico or Canada, not merely repackaged imports from elsewhere, to qualify for favorable treatment. The Mexican government reports that over 84% of its trade with the US is shielded by the trade pact, meaning most Mexican exports reach US shelves without extra duties.
However, key exceptions remain. Autos, steel, and aluminum products face separate tariffs and are not fully protected by the USMCA. For other categories, the 25% tariff, introduced as part of a broader effort to address the flow of fentanyl across the border, was implemented back in March and continues unless a fresh agreement is reached within the current negotiating window. This distinct “IEEPA tariff” will hit only the minority of cross-border trade not compliant with USMCA requirements.
Trump’s latest executive order was part of a broader pattern of using tariffs as a negotiation tool. While the US has concluded new and lower reciprocal tariffs with several Asian and European partners, the administration remains locked in complex and sensitive negotiations with both Mexico and China. The White House has indicated that preserving the free trade pact is critical, but Commerce Secretary Howard Lutnick recently signaled that Trump is “absolutely going to renegotiate USMCA” when it comes up for review next year—a move that could unsettle current exemptions and business planning.
Right now, listeners should note that supply chain planners in both nations are adapting by meticulously tracking rules-of-origin compliance, since any misstep could expose them to the 25% tariffs and potentially even more if new agreements aren’t reached after this 90-day extension.
That’s the latest on Mexico tariff news and current US trade policy drama. Thank you for tuning in and don’t forget to subscribe for our next update. This has been a quiet please production, for more check out quiet please dot ai.
For more check out https://www.quietperiodplease.com/
Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Listeners. Today's top story in Mexico tariff news and tracker
is the continuation of major tensions and uncertainty around US
Mexico trade as President Trump's tariff policies continued to shape
the economic relationship between these two North American giants. On
July thirty first, President Trump issued an executive order that
(00:21):
included sweeping new tariff increases targeting dozens of US trading partners,
but Mexico secured a crucial temporary lifeline. According to legal
analysis from national trade consultancies, Trump announced a ninety day
pause on imposing a threatened thirty percent tariff on all
Mexican hyphen origin goods. For now, the existing twenty five
(00:42):
percent IEPA based tariff rate remains in place, but only
for the small fraction of Mexico's exports to the US
not covered by the United States Mexico Canada Agreement or USNCA.
This is a pivotal point for our listeners. Most goods
that comply with USMCA, which were PLA placed NAFTA in
twenty twenty, continue to move across the border. Tariff free.
(01:05):
USMCA requires products to be substantially made in Mexico. Or
Canada not merely repackaged imports from elsewhere to qualify for
favorable treatment. The Mexican government reports that over eighty four
percent of its trade with the US is shielded by
the Trade Pact, meaning most Mexican exports reach US shelves
without extra duties. However, key exceptions remain. Autos, steel and
(01:29):
aluminum products face separate tariffs and are not fully protected
by the USMCA for other categories. The twenty five percent tariff,
introduced as part of a broader effort to address the
flow of fentanol across the border, was implemented back in
March and continues unless a fresh agreement is reached within
the current negotiating window. This distinct iep A tariff will
(01:54):
hit only the minority of cross border trade not compliant
with USMCA requirements. MP's latest executive order was part of
a broader pattern of using tariffs as a negotiation tool.
While the US has concluded new and lower reciprocal teriffs
with several Asian and European partners, the administration remains locked
in complex and sensitive negotiations with both Mexico and China.
(02:18):
The White House is indicated that preserving the Free Trade
Pact is critical, but Commerce Secretary Howard Lutnik recently signaled
that Trump is absolutely going to renegotiate USMCA when it
comes up for review next year, a move that could
unsettle current exemptions and business planning right now, listeners should
note that supply chain planners in both nations are adapting
(02:41):
by meticulously tracking rules of origin compliance, since any misstep
could expose them to the twenty five percent tariffs and
potentially even more if new agreements aren't reached after this
ninety day extension. That's the latest on Mexico tariff news
and current US trade policy drama. Thank you for tuning in,
and don't forget to subscribe for our next update. This
(03:04):
has been a quiet please production. For more check out
Quiet please dot ai
Listeners. Today's top story in Mexico tariff news and tracker
is the continuation of major tensions and uncertainty around US
Mexico trade as President Trump's tariff policies continued to shape
the economic relationship between these two North American giants. On
July thirty first, President Trump issued an executive order that
(00:21):
included sweeping new tariff increases targeting dozens of US trading partners,
but Mexico secured a crucial temporary lifeline. According to legal
analysis from national trade consultancies, Trump announced a ninety day
pause on imposing a threatened thirty percent tariff on all
Mexican hyphen origin goods. For now, the existing twenty five
(00:42):
percent IEPA based tariff rate remains in place, but only
for the small fraction of Mexico's exports to the US
not covered by the United States Mexico Canada Agreement or USNCA.
This is a pivotal point for our listeners. Most goods
that comply with USMCA, which were PLA placed NAFTA in
twenty twenty, continue to move across the border. Tariff free.
(01:05):
USMCA requires products to be substantially made in Mexico. Or
Canada not merely repackaged imports from elsewhere to qualify for
favorable treatment. The Mexican government reports that over eighty four
percent of its trade with the US is shielded by
the Trade Pact, meaning most Mexican exports reach US shelves
without extra duties. However, key exceptions remain. Autos, steel and
(01:29):
aluminum products face separate tariffs and are not fully protected
by the USMCA for other categories. The twenty five percent tariff,
introduced as part of a broader effort to address the
flow of fentanol across the border, was implemented back in
March and continues unless a fresh agreement is reached within
the current negotiating window. This distinct iep A tariff will
(01:54):
hit only the minority of cross border trade not compliant
with USMCA requirements. MP's latest executive order was part of
a broader pattern of using tariffs as a negotiation tool.
While the US has concluded new and lower reciprocal teriffs
with several Asian and European partners, the administration remains locked
in complex and sensitive negotiations with both Mexico and China.
(02:18):
The White House is indicated that preserving the Free Trade
Pact is critical, but Commerce Secretary Howard Lutnik recently signaled
that Trump is absolutely going to renegotiate USMCA when it
comes up for review next year, a move that could
unsettle current exemptions and business planning right now, listeners should
note that supply chain planners in both nations are adapting
(02:41):
by meticulously tracking rules of origin compliance, since any misstep
could expose them to the twenty five percent tariffs and
potentially even more if new agreements aren't reached after this
ninety day extension. That's the latest on Mexico tariff news
and current US trade policy drama. Thank you for tuning in,
and don't forget to subscribe for our next update. This
(03:04):
has been a quiet please production. For more check out
Quiet please dot ai
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