Mexico’s Chamber of Deputies has approved a reform to the General Import and Export Tax Law, introducing new tariffs on a range of goods from Asia, the Middle East, Brazil, and South Africa. The measure, passed in early June 2024, marks a notable shift in the country’s trade posture as it seeks to protect domestic industries and respond to global economic realignments.
The reform targets sectors such as steel, textiles, and footwear—industries that officials argue have been undercut by low-cost imports. Supporters of the measure contend that the new tariffs are necessary to counter unfair trade practices and to bolster national production capabilities. The changes also include an update to Mexico’s tariff classification system, aligning it with international standards under the Harmonized Tariff System.
The move comes as Mexico positions itself within shifting global supply chains, particularly amid growing interest in nearshoring strategies. By adjusting its trade policy tools, the country appears to be recalibrating its economic priorities to support local manufacturing and employment.
Tariffs may offer short-term relief for domestic producers but risk undermining long-term competitiveness.
However, the reform has drawn criticism from some quarters. Economists and industry groups warn that higher tariffs could increase costs for consumers and downstream manufacturers who rely on imported inputs. There are also concerns that the measure could strain relations with key trading partners in Asia and elsewhere, potentially inviting retaliatory actions or complicating Mexico’s standing in global trade negotiations.
“Tariffs may offer short-term relief for domestic producers but risk undermining long-term competitiveness,” said one analyst familiar with regional trade dynamics.
Mexico remains a signatory to several major free trade agreements, including the United States-Mexico-Canada Agreement (USMCA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). While the new tariffs do not appear to violate these agreements directly, they underscore the tension between Mexico’s international commitments and its domestic industrial policy goals.
The reform now moves to the Senate for review. The timing of that process remains uncertain, as does whether any amendments will be introduced before final approval. For now, the measure reflects a broader trend: Mexico is reasserting control over its trade levers in an increasingly fragmented global economy.
