Background on Key Figures and Context
The Mexican government, led by President Claudia Sheinbaum, has refrained from imposing retaliatory measures against the United States despite threats of trade countermeasures. These potential actions stem from dumping measures by the U.S. in the poultry sector and the failure of the U.S. to comply with a panel in the automotive industry.
Dumping Measures and Poultry Imports
In April 2025, Mexico threatened to impose anti-dumping quotas on U.S.-imported chicken legs and thighs due to accusations of unfair trade practices by American poultry producers. Julio Berdegué, Mexico’s Secretary of Agriculture, stated that there have been ongoing investigations into U.S. poultry imports for years, with one concluding in 2012.
Additionally, Mexico initiated another anti-dumping case against U.S.-imported pork hind legs.
U.S. Anti-Dumping Measures on Tomatoes
Since July 4, 2024, the U.S. has applied an anti-dumping duty of 17.09% on Mexican tomato imports.
Automotive Panel and Trade Disputes
The U.S. Representative Office (USTR) has shown reluctance to comply with a panel’s decision under the USMCA (United States-Mexico-Canada Agreement). Mexico and Canada can impose retaliatory tariffs on the U.S. due to this panel, as the U.S. government has not implemented related measures accordingly.
Mexico argued in the panel that T-MEC automotive origin rules allow “roll-up” methodologies, which consider materials (e.g., auto parts) with regional value content thresholds as fully origin when used in subsequent manufacturing (e.g., a finished vehicle).
Conversely, the U.S. maintains that T-MEC does not permit roll-up methodologies for essential parts incorporated into finished vehicles.
Former Mexican Economy Secretary Ildefonso Guajardo, who led T-MEC negotiations, believes Mexico should impose retaliatory tariffs on the U.S.
Key Questions and Answers
- What are the causes for potential trade retaliation by Mexico against the U.S.?
Mexico is considering retaliatory measures due to dumping practices in the U.S. poultry sector and non-compliance with an automotive panel under the USMCA.
- What specific actions has Mexico taken regarding poultry imports?
Mexico threatened anti-dumping quotas on U.S.-imported chicken legs and thighs, as well as pork hind legs, due to unfair trade practices.
- What anti-dumping measure has the U.S. implemented on Mexican tomato imports?
The U.S. has applied a 17.09% anti-dumping duty on Mexican tomato imports since July 4, 2024.
- What is the disagreement between Mexico and the U.S. concerning automotive origin rules?
Mexico argues that T-MEC allows “roll-up” methodologies for auto parts, while the U.S. contends that T-MEC does not permit such methodologies for essential vehicle parts.
- What is the stance of former Mexican Economy Secretary Ildefonso Guajardo on potential retaliatory tariffs?
Guajardo believes Mexico should impose retaliatory tariffs on the U.S. due to the current government’s inaction regarding established mechanisms.
