Following Mexico's Senate approval of tariffs on Asian imports, Brazil has voiced concerns about potential disruptions to bilateral trade outside the protected automotive sector, urging dialogue to safeguard exports and investments.
Mexico's Senate recently approved President Claudia Sheinbaum's tariff reform under the Law on General Taxes on Imports and Exports (LIGIE), imposing 5 to 50 percent duties on about 1,463 products from China, South Korea, India, Vietnam, and Thailand—nations without free trade agreements with Mexico. Key sectors hit include textiles (706 fractions), iron and steel (249), automobiles and parts (94, though exempt for Brazil via ACE-55), and plastics (81), covering $52 billion in imports (8.6% of total).
The policy seeks to protect over 320,000 jobs in states like Nuevo León and Jalisco, and encourage industry relocation. Modifications affect 316 previously duty-free items, with 341 at 35% and 302 at 10%.
Brazil, not directly targeted but wary of spillover effects, has highlighted risks to its expanding trade with Mexico. President Lula da Silva's government notes the automotive exemption but fears broader preference erosion. Officials are reviewing the final law text, engaging Mexican counterparts for predictability, and stressing Latin American integration.
Opposition voices, like PAN's Miguel Márquez, call for comprehensive reindustrialization beyond tariffs. Consumers may see higher prices on e-commerce platforms like Shein and Temu.
