Last week (August 15th), the President of Mexico signed the "Administrative Order to Amend the General Import and Export Tariff Law," announcing an increase in the most favored nation tariff for various imported products, including steel, aluminum, and chemical products, starting from August 16th. The adjusted tariff range is 5% to 25%.

This legislation will raise import tariffs for 392 tariff items. Almost all products under these tariff items will now be subject to a 25% import tariff, except for some textiles which will be subject to a 15% tariff. The revised import tariff rates will take effect on August 16, 2023, and will end on July 31, 2025.

It is reported that the 392 tariff numbers involve 13 major categories of China's customs tariff classification. The most affected categories are "iron and steel products," "plastics and rubber," "transportation equipment and parts," "textiles," and "miscellaneous furniture."

According to relevant statistics, the export value of these five categories accounted for 86% of China's total exports to Mexico last year. These five categories have also shown significant growth in China's exports to Mexico in recent years. In addition, machinery, copper-nickel-aluminum and other non-ferrous metals and products, footwear, glass ceramics, paper products, musical instruments and parts, chemicals, and precious metals and gemstones have also experienced varying degrees of growth compared to 2020.

Meanwhile, the adjustment made by Mexico is to the import tariffs, not additional taxes, and can be implemented concurrently with measures such as anti-dumping, countervailing, and safeguard measures currently in place.

Source: One Shipping