Mexico IEEPA Tariffs: 25% Rate with USMCA Overlay
Mexico received the same 25% IEEPA tariff as Canada, also effective February 4, 2025. And like Canada, the USMCA complicates eligibility — many Mexican goods entered duty-free under USMCA, paying $0 in IEEPA duties.
Mexico is the United States’ largest single source of imports by value, surpassing China in 2024. The combination of the USMCA’s preferential treatment and the IEEPA rate created a complex situation where some Mexican goods paid full 25% duties while others paid none.
USMCA and Mexican Goods
Mexico’s export base is particularly well-integrated into North American supply chains through USMCA. The automotive sector, electronics manufacturing in maquiladoras, and agricultural exports have often been specifically structured to maximize USMCA qualification.
However, several categories of Mexican goods frequently fail USMCA rules of origin:
- Electronics and components where non-North American inputs exceed allowed thresholds
- Textiles and apparel sourced from non-USMCA yarn or fabric
- Some processed foods with third-country agricultural ingredients
- Goods assembled in Mexico primarily from Asian components
These non-qualifying goods paid the full 25% IEEPA rate and are eligible for CAPE refunds.
Key Mexican Import Categories
Automotive: Mexico is deeply integrated into North American auto supply chains. Many parts cross the U.S.-Mexico border multiple times during manufacturing. USMCA rules for automotive goods are complex and have specific regional content thresholds. Check each entry.
Electronics and Electrical Equipment: Mexico has a large maquiladora electronics sector. Japanese, Korean, and Taiwanese companies have major Mexican assembly operations. Goods assembled from Asian components may not qualify under USMCA.
Agricultural and Food Products: Tomatoes, avocados, berries, and processed foods. Agricultural goods often have straightforward USMCA eligibility, but processed foods with global ingredient sourcing may not.
Apparel: Some apparel production in Mexico uses yarn and fabric from Asia, which may fail USMCA’s “yarn-forward” rule.
The Maquiladora Sector
The maquiladora industry — manufacturing plants in Mexico that assemble products largely from imported components for U.S. export — is a particular focus area. Maquiladora goods often have complex origin situations. If Asian inputs dominate the assembly, USMCA qualification may fail, and the 25% IEEPA rate applied.
Importers who sourced from maquiladoras should work with a trade attorney or customs broker familiar with USMCA rules of origin before preparing their CAPE filing.
Finding Your Eligible Entries
The process is the same as for Canada:
- Pull all Mexican-origin entries from February 4, 2025 through February 20, 2026
- Check USMCA preference status and IEEPA duty amount on each 7501
- Include only entries with positive IEEPA duty assessments in your CAPE CSV
- Exclude all USMCA-exempt entries
The potential refund on non-USMCA Mexican goods can be significant given Mexico’s import volume and the 25% rate.