This week, Mexico’s government announced hundreds of “temporary” tariffs on imports from countries with whom it does not have a trade agreement. The tariffs have been imposed on 544 imported products, including footwear, wood, plastic, electrical material, musical instruments, furniture, and steel, and range from 5% to 50% in size. They have one clear target in mind: imports from China, Mexico’s second largest trade partner, though the word “China” is not mentioned once in the decree.
The latest round of tariffs — which took effect on Tuesday — will apply for two years. They come on the heels of a package of tariffs imposed by the Economy Ministry last month on steel nails and steel balls from China. Mexico’s Economy Minister Raquel Buenrostro, speaking at a Council of the Americas event in Mexico City, said the tariffs were necessary to “prevent unfair competition”:
I assume China will be responding with increased tariffs upon Mexican goods imported to China.