Mexico to United States Trade Guide

Trade Relationship Overview

The United States-Mexico-Canada Agreement (USMCA), in force since July 2020, allows goods that meet its Rules of Origin to enter the US completely duty-free. Combined with Mexico's geographic proximity — enabling truck transit in days rather than weeks — Mexico has become the leading "nearshoring" destination for manufacturers relocating away from Asia.

The Critical Concept: Rules of Origin

USMCA's 0% rate is not automatic. Goods must qualify as USMCA-originating through one of four mechanisms:

Wholly obtained — entirely produced within the USMCA region
Tariff Classification Change (TCC) — non-originating inputs undergo sufficient transformation to change HS classification
Regional Value Content (RVC) — 50–75% of value must originate within the region, depending on product
Combination of TCC and RVC — required for complex manufactured goods

🚨 Nearshoring Doesn't Automatically Qualify

Moving final assembly to Mexico does NOT automatically confer USMCA origin. Textiles require the strict "yarn-forward" rule — yarn must be spun in North America. A T-shirt sewn in Mexico from Chinese yarn does not qualify, even with 90% of value added in Mexico.

USMCA Tariff Comparison by Category

Category	HS Code	USMCA Rate (Qualifying)	MFN Rate (Non-Qualifying)
Plastic Articles	3926	0%	5.3%
Passenger Vehicles	8703	0%	2.5%
Cotton T-Shirts (yarn-forward)	6109.10	0%	16.5%
Steel Fasteners	7318	0%	varies
Electronic Panels	8537	0%	0–2.6%

Required Documents

USMCA Certification of Origin

Self-certified by exporter, producer, or importer — no government-issued certificate required, unlike most other FTAs.

Commercial Invoice & Packing List

Standard documentation.

Bill of Lading / Truck Manifest

Most Mexico-US shipments move by truck (cross-border trucking) rather than ocean freight.

Production Cost Records

Supporting documentation for Regional Value Content calculations, retained for 5 years.

Why Mexico Is the Top Nearshoring Choice

Fastest transit times — 3–7 days by truck vs. 16–35 days by ocean from Asia
0% duty for qualifying goods — eliminates tariff cost entirely, unlike Vietnam's standard MFN rates
Lower freight cost volatility — trucking rates are far more stable than ocean container rates
Time zone alignment — easier coordination with US-based teams than Asia-based suppliers

Common HS Codes for This Route

8703.23 Passenger Vehicles 0%

3926.90 Plastic Articles 0%

8537.10 Electronic Panels 0%

7318.15 Steel Fasteners 0%

8418.10 Refrigerators 0%

For a complete classification lookup, use our HS Code Lookup tool.

Frequently Asked Questions

Is everything from Mexico automatically duty-free under USMCA?

No. Only goods that meet the specific Rules of Origin for their HS code qualify for 0% duty. Goods that don't meet the rules face standard MFN tariffs, the same as if shipped from any non-FTA country.

Do I need a certificate from the Mexican government to claim USMCA?

No. USMCA uses a self-certification system — the exporter, producer, or importer can certify origin directly without a government-issued certificate, unlike older agreements like NAFTA.

What is the yarn-forward rule?

For textiles, USMCA requires that yarn be spun within North America for the finished garment to qualify for preferential treatment — even if cutting and sewing occur in Mexico, foreign-origin yarn disqualifies the product.

Calculate your exact costs for this route

Enter your product details to get a full tariff and landed cost breakdown for Mexico → United States shipments.

🎯 Tariff Impact Calculator 🚢 Landed Cost Calculator