Mexico's New Tariff Plan: A Bold Move to Correct Trade Imbalances
Mexico plans to propose a bill introducing import tariffs on sectors like automotives and manufacturing to address trade imbalances. The proposal aims to generate additional revenue for the state and aligns with international treaties. Tariffs may target countries without current trade agreements with Mexico, including potentially China.
The Mexican government is set to introduce a bill imposing import tariffs on various sectors to tackle trade imbalances, Deputy Minister for Revenues Carlos Lerma announced on Tuesday. The proposal, expected to add 70 billion pesos to state funds, primarily targets sectors such as automotives and manufacturing.
During a press conference following the release of the draft 2026 budget, Lerma indicated that the Economy Ministry will present this bill to Congress. While specific details on tariff adjustments were not disclosed, Lerma emphasized the move would adhere to existing international treaties. Although no countries were named explicitly, Finance Minister Edgar Amador hinted that nations without trade agreements with Mexico, like China, could be affected.
The move comes as the Trump administration in the U.S. urges Latin American countries to limit their economic ties with China. Mexico, already imposing various tariffs on Chinese goods, faces potential inflationary pressures. Analysts warn that increasing tariffs on Chinese imports could exacerbate these pressures, impacting both consumers and producers.
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