Mexico Faces Uncertain Trade Future as Trump Threatens USMCA with Potential Tariff Hikes and Compliance Challenges
14 January 2026

Mexico Faces Uncertain Trade Future as Trump Threatens USMCA with Potential Tariff Hikes and Compliance Challenges

Mexico Tariff News and Tracker

About
Welcome, listeners, to Mexico Tariff News and Tracker. As of January 2026, Mexico enjoys a zero percent reciprocal tariff rate on USMCA-compliant goods, shielding them from the broader trade storm, according to the Trump Administration Tariff Tracker updated January 13. Paidnice's US Tariff Calculator confirms Mexico's rate at zero percent since October 30, 2025, while non-compliant goods face 25 percent fentanyl-related duties, with potash at 10 percent.

President Trump has turned up the heat on USMCA, calling the pact irrelevant during a recent Michigan Ford plant visit, as reported by Global News. He shrugged off its expiration, saying, "It wouldn't matter to me," and insisted the US doesn't need Mexican cars—we want them made here. This rhetoric rattles Mexico ahead of the mandatory USMCA review on July 1, 2026, where countries could renew for 16 years, withdraw, or extend talks annually.

Sector-specific tariffs stack on top: autos and parts at 25 percent, steel and aluminum at 25 percent, copper at 50 percent, per Paidnice updates. The global average US tariff now hits 16 percent—the highest in over 80 years—leaving USMCA as Mexico's key lifeline, notes Baking Business.

Trump's team eyes splitting USMCA into separate US-Mexico and US-Canada deals, with USTR Jamieson Greer flagging Mexican non-tariff barriers. A Supreme Court ruling on IEEPA tariff authority looms this month, potentially reshaping enforcement. Trade Compliance Resource Hub's tracker shows Mexico exempt from baseline reciprocal tariffs since April 2025, but threats persist—like a July 2025 warning to hike fentanyl rates to 30 percent.

Mexico's exporters must stay USMCA-compliant to dodge these hikes amid Trump's push for American manufacturing. Watch the July review closely—it could redefine North American trade.

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