Imposition of tariffs on imports from Mexico, China and Canada by the U.S.
On February 1, 2025, U.S. President Donald Trump announced the imposition of additional tariffs on imports from Mexico, Canada and China. This decision is part of an economic and national security strategy that seeks, in the case of Mexico, to pressure it to strengthen its immigration and anti-drug policies.
The tariffs that the United States has imposed on Mexico and Canada are 25%, although Canadian energy products have a rate of 10%. However, China only faces a 10% tariff with no further details.
Canada
In the Canadian context, the United States has argued that the Canadian energy industry, particularly oil and gas exports, receives subsidies that distort competition and adversely affect U.S. producers. In addition, differences in environmental regulations have generated friction, with Washington arguing that Canadian standards create unfair advantages in production costs.
China
Regarding China, the current administration has maintained the protectionist stance initiated during Donald Trump’s presidency, focusing on reducing the trade deficit and limiting Beijing’s influence in strategic sectors such as technology and manufacturing. Tensions have escalated with new import restrictions on semiconductors and critical materials, reinforcing the U.S. policy of protecting its domestic industry and curbing Chinese technological advancement in key areas.
Mexico
The U.S. government has justified the measure under the International Emergency Economic Powers Act (IEEPA), arguing that drug trafficking and irregular migration represent threats to national security. The discretion granted by this law has allowed the implementation of the tariffs without the need for legislative approval.
In addition, the White House has stated that these actions are intended to curb the illegal trafficking of fentanyl and to strengthen the competitiveness of U.S. industry in the face of what they consider to be unfair trade practices. However, the lack of distinction by product type means that the economic impact will affect multiple sectors.
In response to the imposition of tariffs, Mexico’s President Claudia Sheinbaum rejected the White House’s accusations of alleged links to criminal organizations. As an immediate measure, she proposed the establishment of bilateral working tables to address US concerns regarding migration and drug trafficking.
President Trump and President Sheinbaum held a conversation in which they agreed to suspend the tariffs for a period of 30 days while negotiations take place. Among the commitments reached, Mexico pledged to strengthen security on the northern border, while the United States will work on measures to prevent arms trafficking into Mexico.
On the other hand, the imposition of tariffs by the United States could constitute a violation of Article 2.4 of the T-MEC, which guarantees preferential duty-free access of goods among member countries. Furthermore, these measures contravene several WTO provisions prohibiting unjustified unilateral trade restrictions.
The tariffs imposed by Donald Trump’s administration will impact several key sectors, including automotive, energy, electronics and agri-food. These sectors could face increases in production costs, competitiveness and labor force adjustments, which will have repercussions on bilateral trade with the United States and Mexico’s economic stability.
Should Mexico retaliate without exhausting the dispute settlement mechanisms of the T-MEC and the WTO, its actions could be interpreted as a violation of international treaties, which would affect future trade renegotiations in 2026.
It should be kept in mind that the tariffs could affect North America’s competitiveness vis-à-vis other trading blocs and reduce Mexico’s attractiveness for nearshoring and relocation of industries.
Due to these imposed measures, ECIJA will be instrumental for affected companies to be able to regulate their supply chains, evaluate the possibility of obtaining tariff exemptions and consider legal strategies to mitigate the impact of the tariffs.
International Area of ECIJA Mexico
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