90-Day Suspension of the U.S. Application of 30 Percent Tariffs on Products from Mexico
U.S. President Donald Trump announced on July 12, 2025, the imposition of an additional 30 percent tariff on imports originating from Mexico, with an effective date of Aug. 1, 2025. This measure was introduced independently of existing tariffs currently applicable to steel, aluminum, vehicles and auto parts.
However, on July 31, 2025, one day before the tariff was set to take effect, the governments of Mexico and the United States reached a bilateral agreement through which Mexico obtained a 90-day suspension of the implementation of the additional 30 percent tariff.
As part of this agreement, the following commitments were reached:
- Mexico agreed to immediately eliminate all non-tariff barriers affecting U.S.-origin products. It is important to mention that the Office of the U.S. Trade Representative has a Report on Foreign Trade Barriers. In this regard, it is pending for the U.S. and Mexico to confirm whether all these restrictions will be eliminated.
- Both parties committed to initiate negotiations and reach a new trade agreement within the 90-day period. It is important to highlight that this temporary suspension does not affect the tariff treatment currently in force under the United States-Mexico-Canada Agreement (USMCA). Consequently, Mexican exporters whose goods do not meet USMCA origin requirements will continue to be subject to a 25 percent tariff rate. In addition, a 50 percent tariff remains applicable to steel, aluminum and copper products, and a 25 percent tariff continues to apply to autos and auto parts.
In light of this 90-day suspension, it is important to highlight that the current valid tariffs imposed by the United States are as follows:
|
Who |
What |
Rate |
|
China |
20% |
|
|
Canada |
35% |
|
|
Mexico |
25% |
|
|
All countries |
50% |
|
|
All countries |
50% |
|
|
Countries importing Venezuelan oil (currently none) |
25% |
|
|
All countries |
25% |
|
|
All countries |
25% |
|
|
All countries (minus Canada, China, Mexico, Cuba, North Korea, Russia, Belarus) |
10% |
|
|
China |
10% |
|
|
China |
N/A |
|
|
All countries |
25% |
|
|
All countries |
50% |
The foreign trade team at Holland & Knight is supporting both domestic and international companies to analyze legal alternatives and strategies in Mexico and the United States.
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.