USMCA / Mexico Import Tariffs 2025

USMCA: The Basics

The United States-Mexico-Canada Agreement (USMCA) replaced NAFTA on July 1, 2020. For US importers, USMCA means most goods manufactured in Mexico can enter the US duty-free — as long as they meet the agreement's rules of origin requirements.

Mexico became the top US trading partner in 2023 and 2024, surpassing China largely due to tariff-driven supply chain diversification (nearshoring). For many manufacturers, Mexico offers the best combination of: zero duties, short transit times (truck vs. ocean), and strong manufacturing infrastructure.

✅ Key USMCA Benefits for US Importers

Zero tariffs on qualifying goods across virtually all product categories
No Section 301 surcharges — those are China-only
Truck and rail freight instead of ocean — 2–5 day transit vs. 18–30 days
Lower inventory requirements due to shorter, more predictable supply chains
Same timezone for supplier communication
Lower IP risk than Asia sourcing in many categories

USMCA Duty Rates by Product Category

Qualifying goods are duty-free. Non-qualifying goods (typically those with excessive Chinese content) revert to MFN rates. Certain sectors face additional tariffs regardless of USMCA status.

Category	HS Chapter	USMCA Rate	MFN Rate (if no USMCA)	Notes
Automotive Vehicles	87	0%	2.5%	75% RVC required
Auto Parts	87	0%	2.5–3.5%	65–75% RVC required
Electronics	85	0%	0–3.9%	Many at 0% MFN anyway
Machinery	84	0%	0–3.9%	Most qualifying
Apparel & Clothing	61–62	0%	12–32%	Yarn-forward rule applies
Footwear	64	0%	6–37%	Must qualify by RVC
Plastics & Articles	39	0%	0–6.5%	Generally qualifying
Steel Products	72–73	25% (Sec 232)	0–25%	232 overrides USMCA
Aluminum Products	76	10% (Sec 232)	0–7.5%	232 overrides USMCA
Agricultural — Fresh Produce	07–08	0%	0–5%	Seasonal safeguards exist
Agricultural — Processed	16–24	0%	0–35%	TRQs for some dairy/sugar
Medical Devices	90	0%	0–3.9%	Major manufacturing hub
Furniture	94	0%	0–7.5%	Must meet RVC
Ceramics	69	0%	0–28%	Generally qualifying
Textiles & Fabric	50–60	0%	4–14%	Fiber-forward rule applies

USMCA rates effective July 1, 2020. MFN rates from USITC HTS 2025. TRQ = Tariff Rate Quota. Section 232 steel and aluminum surcharges apply regardless of USMCA origin.

USMCA Rules of Origin — What Qualifies?

Not all goods manufactured in Mexico automatically qualify for zero-duty USMCA treatment. Your product must meet specific rules of origin tests.

Regional Value Content (RVC) Requirements

Sector	RVC Required	Method	Qualifies from Mexico?
Passenger Vehicles	75%	Net Cost	High bar — verify
Light Trucks	75%	Net Cost	High bar — verify
Auto Parts (core)	65–70%	Net Cost	Verify with supplier
General Manufactured Goods	60%	Transaction Value	Usually qualifies
Textiles & Apparel	Yarn-forward	Fiber origin	Hard if using Asian yarn
Chemicals	Tariff shift	Chapter change	Usually qualifies
Agricultural Products	Wholly obtained	Grown in USMCA	Yes if grown in Mexico

How to Calculate RVC

Transaction Value Method:

RVC = (Transaction Value - Value of Non-Originating Materials) ÷ Transaction Value × 100

Net Cost Method:

RVC = (Net Cost - Value of Non-Originating Materials) ÷ Net Cost × 100

For most goods, if your Mexican supplier sources ≥40% of input value from within North America, the product will likely qualify. If most inputs are from China/Asia, it likely won't.

🚨 2025 Alert: China-in-Mexico Scrutiny

Both CBP and USTR are actively investigating Mexican factories that assemble goods from primarily Chinese inputs. The USMCA Review (scheduled for 2026) is expected to tighten origin rules further. Companies currently using Mexican maquiladoras to circumvent China Section 301 tariffs face retroactive duty exposure.

Key risk areas: automotive components, electronics assembly, solar panels, steel products.

Section 232: Where Mexico Still Faces Tariffs

USMCA eliminates most tariffs, but it does not waive Section 232 tariffs (national security tariffs on steel and aluminum). These were imposed by the Trump administration in 2018 and remain in effect.

Product	Section 232 Rate	USMCA Override?	Exclusions Available?
Steel Mill Products (most)	25%	No — 232 applies	Product-specific exclusions
Aluminum (unwrought)	10%	No — 232 applies	Product-specific exclusions
Aluminum Articles	10%	No — 232 applies	Some exclusions granted
Derivative Steel Articles	25% on steel content	No — 232 applies	Case-by-case

If you're importing steel components or aluminum parts from Mexico, use our landed cost calculator to model the full 232 impact on your unit economics.

Mexico vs. China vs. Vietnam: Sourcing Comparison

Factor	Mexico (USMCA)	China	Vietnam (MFN)
Effective Tariff (most goods)	0%	7.5–25% + MFN	MFN only (0–32%)
Section 301	Not applicable	7.5–25%	Not applicable
Ocean Transit Time	N/A (truck: 1–3 days)	18–30 days	22–35 days
Freight Cost (avg, per 40ft container)	$2,000–4,000	$3,500–8,000	$4,000–9,000
Manufacturing Capacity	Large (auto, aerospace, medical)	Massive (nearly all categories)	Growing (apparel, electronics)
Labor Cost (relative)	Medium	Medium-high (rising)	Lower than China
IP Protection	Strong (USMCA IP chapter)	Weak	Moderate
Nearshoring Benefits	Highest (JIT possible)	None	None

Claiming USMCA Preference at Import

Documentation Required

USMCA Certificate of Origin — completed by the importer, exporter, or producer. Unlike NAFTA, there's no specific form — the certification can be included in commercial documents or a standalone statement.
Required information per 19 CFR Part 182 Appendix A:
- Certifier name and address
- Exporter and producer name
- Importer name (if known)
- Description, HS tariff classification, and country of origin
- Blanket period (optional, up to 12 months)
- Statement of basis for claiming USMCA origin
Record keeping: Must retain origin documentation for 5 years
CBP Form 7501: Claim USMCA preference by using special program indicator "MX" in the rate column

💡 Importer Best Practices

Get a signed USMCA certification from your Mexican supplier before the first shipment
Request updated certifications annually (or use blanket certifications)
Verify your supplier's RVC calculation — don't just take their word for it
Consider a binding ruling from CBP for high-volume products
Keep the certification on file — CBP can audit USMCA claims up to 5 years after entry

Frequently Asked Questions

Are most imports from Mexico duty-free under USMCA?

Yes, most goods that meet USMCA rules of origin are duty-free. However, goods must qualify by meeting regional value content (RVC) requirements — typically 60–75% North American content. Goods made primarily from Chinese inputs assembled in Mexico do not qualify.

Does Mexico face Section 232 steel and aluminum tariffs?

Steel and aluminum from Mexico are subject to Section 232 tariffs (25% on steel, 10% on aluminum) unless specific product exclusions apply. USMCA does not waive Section 232 tariffs. Check for product-specific exclusions from the Commerce Department.

What is the USMCA Regional Value Content requirement?

Most goods need 60% RVC under the Transaction Value method or 50% under the Net Cost method. Automotive sector is higher: 75% RVC for vehicles. Textile/apparel typically requires yarn-forward production in North America. If your supplier in Mexico sources most inputs from China, the product likely does not qualify.

What are the 2025 tariffs on Chinese goods assembled in Mexico?

If goods are primarily made from Chinese inputs and merely assembled in Mexico, they do not qualify for USMCA and may be subject to Section 301 tariffs as Chinese-origin goods. USTR and CBP have specifically targeted this practice, known as "tariff engineering" or circumvention.

When is the USMCA review?

USMCA includes a Joint Review Clause requiring all three parties to meet no later than July 1, 2026 to assess the agreement. The 2026 review may tighten rules of origin, particularly for automotive and electronics sectors with significant Chinese component exposure.