US Proposes Tariffs on 60 Countries, Including Mexico, Over Forced Labor Concerns

The United States has proposed additional tariffs on goods from Mexico and 59 other nations, citing concerns over forced labor. The U.S. Trade Representative's Office (USTR) suggested an additional 10% tariff on imports from Mexico and 13 other economies, and a 12.5% tariff on goods from 46 additional countries. These proposed measures are part of an ongoing Section 301 investigation into whether these nations adequately prohibit and penalize the import of goods produced through forced labor.

Mexico's Ministry of Economy stated it will work with the U.S. and present arguments to prevent the imposition of these tariffs. The ministry emphasized that the proposal is a preliminary step, not a final decision. The USTR's investigation reportedly points to an alleged lack of prohibition and effective enforcement in these 60 countries, including the European Union, the United Kingdom, Canada, and Mexico, to prevent the import of goods made with forced labor in third nations.

The ministry further noted that the USTR's proposal is related to a strategy to substitute previous tariffs, some of which were eliminated by the Supreme Court. A preliminary process requires the reception of comments and consultations over the next 45 days. Mexico is confident that the tariff proposal will be modified following bilateral discussions, which will continue in the coming weeks as part of the review of the USMCA trade agreement.