Mexico Holds USMCA Tariff Exemption as Trump Imposes Global 10% Levy — USMCA Review Looms July 2026

Mexico continues to be exempt from the Trump administration's broad global tariff regime under USMCA rules-of-origin protections, as of April 9. When Trump imposed a 10% Section 122 tariff on most US trading partners on April 2, Mexico and Canada were exempted for USMCA-qualifying goods — approximately 85% of Mexican exports to the US. Non-USMCA-qualifying goods face the 10% surcharge. The exemption is legally time-limited, expiring approximately July 24, 2026, unless Congress acts or a new arrangement is reached. Critically, the USMCA joint review process formally begins July 1, 2026, overlapping with the tariff sunset — creating a compressed negotiating window. The Trump administration has signaled it intends to renegotiate rather than simply review the agreement, tying trade continuity to enhanced cartel interdiction commitments from Mexico. Mexico's 2025 record trade surplus with the US ($20%+ above 2024) adds political pressure ahead of that renegotiation.