According to reports, on August 15, the Mexican President signed the "Administrative Order on Amending the General Import and Export Tariff Law". Since August 16, the import tariffs on steel, rubber, glass, textiles, ceramics and other 392 customs codes have been adjusted to 5% ~ 25%.
According to this decree, for any country that does not sign a free trade agreement with Mexico (such as: China, led by Asian countries), Mexico in its imports (policy provisions of the 392 tax items) products, are required to pay 5% ~ 25% tariff.
can be seen from the above chart, for some countries, including China, South Korea and India, strategic industries such as steel, textiles, clothing, footwear, aluminum, tires, plastics, glass and ceramics will be affected by these tariffs. Among them, the import tariff rate is increased to 5 per cent, 10 per cent, 15 per cent, 20 per cent and 25 per cent, but there is a substantial impact, focus on "windshields and other body accessories under 8708" (10%), "textiles" (15%) and "steel, copper and aluminum, metal, rubber, chemical products, paper, ceramic products, glass, electrical materials, musical instruments and furniture" (25%) and other product categories.
Mexico's Ministry of Economy stated in the Official Journal of the Federation (DOF) that these new tariffs of up to 25% will take effect on August 16, 2023 and the policy will continue until July 31, 2025. The implementation of this policy aims to promote the stable development of Mexican industry and maintain the global market balance.
In addition, the decree also canceled November 18, 2022 in the "Official Journal of the Federation" in the decree of the provisions of the tariff relief, Mexico believes that the country's textile and footwear industry is facing a vulnerable situation.
Mexico's Ministry of Economy (SE) took this measure to compensate for the loss of market share by domestic enterprises during the new crown epidemic and the impact on small and medium-sized enterprises.
, because the tariff increase has no warning in advance, Chinese companies that use Mexico as the export market and transfer investment destination country will undoubtedly be affected to a considerable extent. It not only affects the flow of goods between the two countries, but also does not help Mexico to undertake China's industrial and supply chain transfer.
According to China's General Administration of Customs released by the relevant data statistics, China's exports to Mexico from 2018 to 2020 between 44 billion to 46 billion US dollars, increased to 2021 67.4 billion US dollars, 2022 further increased to 77.5 billion US dollars; 2023 in the first half of the year, China's exports to Mexico has exceeded 39.2 billion US dollars.
It is reported that 392 tax numbers involve 13 major categories of my country's customs tariff categories. The most affected are "steel and steel products", "plastics and rubber", "transportation equipment and parts", "textiles" and "Furniture Miscellaneous".
these five categories of products are also the product categories that have seen significant growth in China's exports to Mexico in recent years. In addition, mechanical appliances, copper-nickel-aluminum and other base metals and products, shoes and hats, glass ceramics, paper, musical instruments and parts, chemicals, precious stones and precious metals are also higher than in 2020.
at the same time, the object of Mexico's upward adjustment is import tariffs, not additional taxes, which can be levied in parallel with the ongoing anti-dumping, countervailing and safeguard measures. Therefore, products that are under investigation by Mexico or have already implemented anti-dumping duties will face further tax pressure.
The Mexican Ministry of Economy is currently conducting anti-dumping investigations on steel balls and tires imported from China, and at the same time conducting countervailing sunsets and administrative reviews on seamless steel pipes from countries and regions such as South Korea. All of the above products are included in the scope of this tariff increase. In addition, China (including Taiwan) stainless steel, coated flat steel, China and South Korea made cold rolled plate, South Korea, India and Ukraine made seamless steel pipe will be affected by the tariff increase.
Source: Ningbo Shipping