Guatemala seeks zero tariffs as US imposes new 10% duties over forced‑labour claims

Guatemala's Ministry of Economy, led by Minister Gabriela García, presented arguments to the U.S. Office of the USTR on July 23 requesting that a large share of Guatemalan export products, presently subject to a 10% tariff, receive a permanent 0% tariff. The request targets the Section 122 review deadline of July 24, the final day of a 150‑day temporary tariff period established under the 1974 Trade Act.

At the same time, the USTR, headed by Jamieson Greer and acting under President Donald Trump's “America First” policy, announced a new 10% Section 301 tariff on imports from 60 economies, including Guatemala, for alleged failure to effectively ban products made with forced labour. The new duty is intended to replace the expiring temporary 10% tariff and applies to unspecified product categories.

Guatemalan exporters and the Guatemalan Exporters Association said they are confident the USTR will consider the arguments and that a favorable response could arrive before the July 24 deadline, citing compliance with the bilateral trade agreement.