Washington Launches Trade Probe Against Mexico

The United States announced the launch of trade investigations into several major economies, including Mexico to assess whether their industrial policies and manufacturing overcapacity harm US industry. If authorities determine that certain actions harm US trade, Washington could impose tariffs or other trade restrictions.

In addition to Mexico, the investigations will include China, EU, Japan, India, South Korea, Vietnam, Taiwan, Indonesia, Malaysia, Thailand, Bangladesh, Singapore, Switzerland, Norway and Cambodia. In a statement, US Trade Representative Jamieson Greer said the process will evaluate whether policies or practices adopted by these economies are unreasonable or discriminatory and whether they restrict US trade.

According to the US government, several countries produce more goods in certain industrial sectors than their domestic markets can absorb. These surpluses are exported to other markets, which Washington argues can displace domestic manufacturing or discourage new investment in US industry.

The process will involve consultations with the governments concerned. Authorities will begin accepting public comments on March 17, followed by a hearing scheduled for May 5, after which officials will determine whether to adopt trade measures.

The administration of Donald Trump said the investigations are part of a broader effort to strengthen domestic manufacturing and reduce reliance on imports in sectors considered strategic. The review is being conducted under Section 301 of the Trade Act of 1974, which allows the US trade representative to respond to foreign practices deemed unfair.

Shift to Section 301 After Court Ends IEEPA Tariffs

The investigations follow a shift in US trade policy after tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were struck down by the Supreme Court of the United States.

On Feb. 20, 2026, the court ruled that IEEPA does not authorize the president to impose tariffs, stating that trade duties require explicit congressional authorization. As a result, tariffs introduced under the emergency law were declared invalid and formally terminated.

Before the ruling, these measures targeted several trading partners. Imports from Canada faced tariffs of up to 35% on most goods, with a reduced 10% rate on potash and energy products and exemptions for goods covered under the USMCA. Imports from Mexico were subject to a 25% tariff on most goods and 10% on potash under measures linked to fentanyl trafficking and migration.

Imports from China were subject to a 10% tariff on all goods, including shipments that previously qualified for duty-free treatment under the US de minimis threshold of US$800. Other measures included tariffs linked to countries purchasing oil from Venezuela and broader reciprocal tariffs ranging from 10% to 41% depending on the country of origin. Additional policies imposed duties of up to 40% on goods determined to have been transshipped to evade existing tariffs.

Country-specific measures also targeted imports from Brazil, with tariffs of up to 40% on selected goods, and from India, where imports faced tariffs of 25% linked to purchases of Russian oil.

Following the court ruling and the cancellation of these tariffs, the administration has increasingly turned to Section 301 investigations to evaluate foreign trade practices and determine whether new tariffs or other trade restrictions should be imposed.