High Labor Cost and Compact Mexico Competition Shuts down Virginia Tyre Factory

[ABS News Service/28.09.2026]

The United States has requested Mexico’s review of alleged violations of organizing and collective bargaining rights at Yokohama Tire Manufacturing Mexico in Coahuila, extending a series of US-Mexico-Canada Agreement labor enforcement actions involving the tire industry.

According to USTR’s September 25 announcement, the action follows the closure of Yokohama’s Salem, Virginia, plant and the layoff of nearly 600 American workers.

USTR said the United States will suspend liquidation of entries of goods from the Mexican facility pending further notice. Mexico has 10 days to agree to review the allegations and, if it agrees, 45 days from the request to complete its review.

The case arises from an August 26 petition filed by Liga Sindical Obrera Mexicana (LSOM) and the International Lawyers Assisting Workers Network.

The petition alleges retaliation against union supporters, discriminatory access for competing unions, irregularities preceding a union representation vote, unlawful dismissals, and failure to comply with the rubber industry’s sector-wide collective bargaining agreement, known as the contrato ley.

The US interagency committee found sufficient credible evidence to invoke the Rapid Response Labor Mechanism.