Mexico raises tariffs up to 35% to support jobs in the textile sector


By

Bloomberg

Published


December 20, 2024

Mexico has increased tariffs by up to 35% on products that could affect its national textile industry, the Economy Minister said.

Bloomberg

The government of President Claudia Sheinbaum temporarily raised tariffs on finished clothing products to 35%, and increased the import of textile goods to 15%, the Minister of Economy, Marcelo Ebrard, announced this Thursday during a press conference with Sheinbaum. The increase will be in effect until April 22, 2026, according to the minister's presentation.

The decision exempts any country with which Mexico has free trade agreements, such as the United States and Canada, and is not directed at any country in particular, Ebrard said in response to a question about whether the policy was intended to specifically impact China.

The minister, who did not detail the specific products that will bear the new tariffs, said that the measure seeks to avoid the loss of jobs in the Mexican textile industry and stop unfair competition. This year marked a low point in employment in the sector, with 79,000 jobs lost in recent years, according to the minister's presentation.

“With this we are going to encourage the development of our national industry because a strategic objective of shared prosperity is to increase the national content of everything we consume,” said Ebrard. “The more Mexican content you have, the more jobs there will be in Mexico.”

The move comes as the government signals to its major trading partners that it seeks to strengthen the North American trading bloc. Incoming US President Donald Trump has expressed concern that cheap Chinese goods are using Mexico as a backdoor to enter the US market, which could affect local production and jobs.

Mexico has already imposed tariffs this year on Chinese products such as steel, aluminum and plastics.

Last month, Trump also threatened Mexico and Canada with considering 25% tariffs on all products from the two partners unless they reduce border crossings of undocumented immigrants into the United States and fentanyl trafficking.

Mexico has continued to say it will seek to strengthen North America. Among signals to its partners, last month Mexico's Ministry of Economy began an operation called “cleanup” that includes raids that seek to combat the flow of illegal goods entering the country, mainly from China.

Sheinbaum's administration also increased the number of products that cannot be imported for the textile industry, Ebrard added Thursday without providing further details.

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