US Imposes New 10% Section 301 Tariff on Mexico Over Forced-Labor Import Enforcement Gaps

The Office of the US Trade Representative announced the results of a Section 301 forced-labor investigation covering 60 economies, imposing new ad valorem tariffs effective July 24–25, 2026. Mexico was placed in the more favorable 10% tier (rather than the 12.5% tier applied to countries with no forced-labor import prohibition at all) because USTR determined it has import bans on the books but has failed to effectively enforce them against goods transiting its supply chains. Crucially, Mexican goods that qualify for duty-free treatment under USMCA rules of origin remain exempt from the new tariff, so the measure primarily affects the roughly 11-16% of Mexico-US trade that does not claim USMCA preference. The action landed in the middle of the ongoing USMCA joint-review negotiations and added a new friction point alongside earlier tariff threats on autos, steel, aluminum, and copper.