HS Code:
Goods of Mexico or the United States, as provided for in Note 1(a) to this subchapter, typically include a wide range of products covered under specific Harmonized System (HS) codes as defined by trade agreements such as the United States-Mexico-Canada Agreement (USMCA). These goods often encompass agricultural products, manufactured items, and raw materials that qualify for preferential tariff treatment under the agreement when meeting rules of origin and other criteria. This category is critical for facilitating trade between the two nations, fostering economic integration, and supporting industries reliant on cross-border supply chains.
Total Trade Volume
USD 677 billion
Data from 2022
Source
United States International Trade Commission (USITC) and International Trade Centre (ITC)
Average Rate
0% under USMCA for qualifying goods
Highest Rate
Up to 25% for non-qualifying goods or under specific retaliatory measures
Lowest Rate
0% for most goods meeting rules of origin under USMCA
Increased demand for automotive parts and electronics
Boosted bilateral trade in manufacturing sectors due to nearshoring trends and supply chain resilience efforts post-COVID-19.
2021-2022
Growth in agricultural exports
Mexico's exports of fresh produce and the U.S. exports of grains have seen steady growth, driven by seasonal complementarities and consumer demand.
2020-2022
Shift towards sustainable trade practices
Both countries are increasingly adopting environmentally friendly policies, impacting sectors like energy and manufacturing with new compliance costs.
2022
Ongoing disputes under USMCA regarding automotive rules of origin and energy policies between the U.S. and Mexico have led to formal consultations and potential panel reviews.
July 2022
May lead to temporary trade disruptions or retaliatory tariffs if unresolved, particularly affecting automotive and energy sectors.
The U.S. and Mexico reached agreements to replace Section 232 tariffs with tariff-rate quotas for steel and aluminum, ensuring smoother trade flows for these materials.
May 2021
Stabilized trade in metals, benefiting manufacturing industries reliant on these inputs.
Mexico's push to prioritize state-owned enterprises in the energy sector has raised concerns among U.S. investors and could violate USMCA commitments.
October 2022
Potential trade tensions and legal challenges under USMCA could impact energy trade and investment flows.