🌎 Nearshoring & USMCA Analysis
USMCA / Mexico Import Tariffs 2025
Most qualifying Mexican goods enter the US duty-free. Here's exactly what qualifies, what the rules of origin require, and where tariffs still apply.
0%
Duty rate for
qualifying USMCA goods
60–75%
Regional Value Content
required to qualify
25%
Section 232 still applies
to steel from Mexico
#1
US trading partner
(by goods, 2024)
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.