In a significant trade policy shift, Mexico last month imposed temporary import tariffs on over 500 product categories, with levies ranging from 5 to 50 percent. The action affects countries with which Mexico lacks formal trade agreements. Analysts view it as an effort to close market loopholes and indirectly target policies associated with China. The geopolitical and economic backdrop renders Mexico’s measures both strategic and inevitable, they say.
On April 22, the Mexican government issued a decree detailing the new tariffs on 544 product categories, impacting a diverse array of products including steel, aluminum, textiles, wood, footwear, plastics, chemicals, paper, cardboard, ceramics, glass, electrical items, transportation materials, musical instruments, and furniture. The decree, effective April 23, will remain in force for two years. It does not affect nations within Mexico’s network of trade agreements, including the United States, Canada, the European Union, Australia, Japan, Chile, and Vietnam.
