Led by Economy Minister Raquel Buenrostro, Mexico's tariff decree, implemented since August 2023, will be updated to include imports from countries without a trade agreement with China. This update entails customs duties ranging from 5% to 25% for products deemed to have security vulnerabilities, such as steel, aluminum, plastic, and electrical materials.
This announcement comes a week after Mexico imposed a temporary compensatory tariff of 31% on steel nails from China, regardless of their country of origin, following the conclusion of an anti-dumping investigation in September.
Buenrostro's statements indicate that Mexico is focused on supporting its national industry by increasing protective measures against steel and aluminum products from China. The observed increase in imports of Chinese-origin products and the disruption of local producers' competitive conditions are among the significant factors prompting Mexico to take action.
Behind Mexico's decision to enhance measures against steel and aluminum products from China is also the warning from the United States about transparency deficiencies regarding steel and aluminum products. Buenrostro reiterated Mexico's willingness to share the necessary information to ensure product traceability and combat triangular trade practices.
The tariff restrictions may lead to a decline in China's steel and aluminum exports to Mexico and could negatively impact Chinese firms' investment appetite in Mexico. This situation is anticipated to escalate trade tensions between the two countries and potentially lead to a trade war.
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