Exclusion of Tariffs to USMCA Goods Imported into the U.S. from Mexico

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.

Please contact the authors for further information.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.