Latin American Countries Urge U.S. to Exempt Them from New 10%–12.5% Tariffs

WASHINGTON — Several Latin American countries and some steel manufacturers jointly voiced their concerns at a public hearing held Tuesday by the U.S. Trade Representative’s office (USTR), urging the Trump administration to exclude Latin American nations from the proposed new tariffs of 10% to 12.5%. These tariffs are intended to penalize countries that inadequately enforce bans on imports of goods produced with forced labor.

The hearing centered on the USTR’s tariff proposals targeting 59 countries and the European Union, and is part of the legal process under Section 301 of the Trade Act of 1974 for imposing tariffs on so-called “unfair trade practices.” The USTR claims that forced labor in foreign supply chains subjects U.S. workers to unfair competition. The new tariffs are widely seen as a replacement for the 10% interim tariffs implemented in February — after the Supreme Court struck down President Trump’s comprehensive global tariffs imposed under emergency powers, with those interim tariffs set to expire on July 24.

Ministers and representatives from Mexico, Peru, Guatemala, and Ecuador firmly denied allegations of failing to enforce anti‑forced‑labor laws at the hearing, stressing that each country already has relevant laws and procedures in place to address the issue. Mexico’s Deputy Minister of Economy, Ernesto Acevedo Fernández, stated at the hearing: “Mexico has made combating forced labor a serious priority.” He noted that an additional 10% tariff would unjustly penalize thousands of law‑abiding Mexican companies. Under the USTR’s proposal, Mexican goods that comply with the rules of the U.S.–Mexico–Canada Agreement (USMCA) would be eligible for exemptions. Acevedo emphasized: “The tariffs proposed by the USTR against Mexico are unwarranted, as there is no evidence that goods produced through forced labor enter the United States via Mexico.”

Peru’s chief trade negotiator, José Luis Castillo Mesarina, requested that Peru be exempted from the tariff list, stating that “in Peru’s case, no specific burden on U.S. commerce has been established, nor has the evidentiary standard required under Section 301 been met, and bilateral trade relations do not justify the imposition of such measures.”

Meanwhile, some steel manufacturers and industry associations called at the hearing for exemptions on imported pig iron. Pig iron is used in electric‑arc furnace steelmaking and cannot be sourced domestically from integrated blast furnace steel producers such as U.S. Steel Corporation and Cleveland‑Cliffs. Pig iron had previously been exempted from Trump’s 50% “Section 232” national security steel tariffs, but would still be affected by the proposed forced‑labor tariffs, raising costs for producers such as Nucor Corporation and Steel Dynamics. Brandon Farris, executive vice president of the American Steel Manufacturers Association, warned that without an exemption, tariffs on pig iron imported from Brazil — a major supplier — could rise to 37.5% when combined with the dedicated tariffs targeting Brazil.

Attorneys general from 22 Democratic states filed objections on Monday, arguing that these forced‑labor tariffs “attempt to disguise predetermined across‑the‑board tariffs” and constitute an abuse of Section 301 authority, while signaling potential legal challenges. A separate USTR hearing on a 25% tariff on Brazilian goods concluded the same day, with Brazilian right‑wing Senator Flávio Bolsonaro testifying.