U.S. tariffs on México: key strategies to mitigate financial impact

The imposition of U.S. tariffs on products imported from México has become a significant financial challenge for companies. In this context, it is essential to develop a comprehensive strategy to reduce costs and mitigate the economic impact of such measures.

A critical first step is to strengthen customs planning by fully leveraging the benefits of the United States-Mexico-Canada Agreement (USMCA/T-MEC). This agreement provides options to import goods duty-free or at reduced rates. It's also vital to take advantage of specific provisions such as Chapter 98 of the HTSUS (9801, 9802), along with the correct classification and accurate customs valuation—efforts that can be optimized through participation in the ACE Reconciliation Program.

Additional tools such as Foreign Trade Zones (FTZs), Bonded Warehouses, and In-Bond transportation can help defer or eliminate duties on goods that are not intended for U.S. consumption. Likewise, implementing a Drawback Program for previously imported goods may offer substantial savings, although it’s crucial to account for specific restrictions under USMCA and regulations like Section 232.

Contractual negotiations also play a vital role. Companies should proactively negotiate cost-sharing agreements with suppliers and customers to address tariff-related expenses. These agreements must be clearly defined in contracts through pass-through clauses.

Effective communication is equally important. Proactively informing clients about potential price adjustments and transparently explaining the impact of tariff changes can help minimize friction. Internally, clear communication with senior management and departments such as purchasing, production, and materials is also critical.

Moreover, companies must strengthen their customs compliance by investing in specialized personnel, developing robust internal procedures, and ensuring ongoing training to keep up with rapidly evolving global trade regulations.

From a strategic standpoint, companies should also prepare for increased scrutiny and potential CBP audits related to preferential treatment under USMCA. Evaluating the adequacy of Importer Bonds and leveraging electronic payment programs like ACH and Periodic Monthly Statement (PMS) are also highly recommended.

In the face of ongoing volatility in U.S. trade and tariff policy, maintaining constant vigilance, relying on official information sources, and seeking expert guidance are essential. Making well-informed, strategic decisions is the most effective way to reduce the financial impact of U.S. tariffs.

— Jorge A. Torres, President, Interlink Trade Services