Mexico Considers Matching U.S. Tariff Rates on Chinese Imports

To Our Clients and Friends,

We want to bring to your attention a significant development in international trade that could impact North American markets in the coming weeks.

On February 28th, the U.S. Treasury announced that Mexico has proposed aligning its tariffs on China’s imports with those of the U.S. This proposal comes as top Mexican officials engaged in trade talks with members of President Donald Trump’s cabinet, just ahead of the March 4th deadline when U.S. tariffs on Mexican and Canadian imports are set to take effect, alongside an additional 10% tariff on Chinese imports.

It is worth mentioning that, according to reports, Mexico's proposed tariffs would primarily target automobiles and auto parts, likely as a defensive maneuver in the face of escalating trade tensions. Mexican officials have indicated that Mexico may consider additional trade measures beyond tariffs. These could include more stringent regulations on cheap Chinese goods, which have entered the market through prior low-cost exemptions.

This development is a key piece of the ongoing trade dynamics between the U.S., Mexico, and China, and signals the shifting focus of Mexico's trade policies as it seeks to respond to what it seen as unfair Chinese trade practices.

We will continue to monitor this matter closely and provide updates as new developments arise.

Sincerely,

Ernesto Velarde Danache, Inc.