Trump Escalates Mexico Trade War: Massive Tariffs Reshape US-Mexico Economic Landscape in Dramatic 2025 Policy Shift
31 December 2025

Trump Escalates Mexico Trade War: Massive Tariffs Reshape US-Mexico Economic Landscape in Dramatic 2025 Policy Shift

Mexico Tariff News and Tracker

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Welcome to Mexico Tariff News and Tracker, where we break down the latest US-Mexico trade developments under President Trump.

In 2025, Trump's tariff policies dramatically reshaped global trade, with Mexico at the epicenter. According to A News, Trump kicked off the year on February 1 by imposing 25% tariffs on most imports from Mexico, citing a fentanyl and migrant crisis, though USMCA-compliant goods were quickly exempted. These tariffs were suspended briefly for 30 days as Mexico bolstered border security, but reinstated on March 4. By March 6, Trump exempted USMCA-covered goods until April 2, sparing about 75% of Mexican exports.

The rollercoaster continued with Trump's April 2 Liberation Day announcement of reciprocal tariffs starting at 10% on nearly all countries, including Mexico, effective April 5. Yale University Budget Lab reports the US average effective tariff rate soared to 16.8% by late 2025, the highest since 1935, generating over $250 billion in revenue by December per Wikipedia's overview of second-term tariffs. On April 3, Trump ended the USMCA auto exemption, slapping a 25% tariff on imported cars and parts from Mexico, which economists like Arthur Laffer say could hike US car prices by $4,711.

By July, base tariffs on Mexico hit 30%, delayed 90 days for talks, while Canada faced 35%, as noted in DTN Progressive Farmer. Mexico responded decisively: CBT News reports Mexico imposed up to 35% tariffs on Asian imports like autos and steel, aligning with US policy to boost revenue and protect markets.

A Supreme Court case heard November 5 could upend these measures, with billions in revenue at stake, per A News. As 2025 closes, USMCA reviews loom large for 2026.

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