Mexico Takes Action Against Tariffs; Investigations and Additional Duties on Chinese Products
The Ministry of Economy has announced new trade measures to protect local industry against goods coming from China, including the implementation of a provisional tariff on thermoplastic rubber and a review of the tariffs applied to imports of welding wire. Additionally, an anti-dumping investigation has been launched regarding laminated steel, all while awaiting Donald Trump’s decision on the 25% tariffs on Mexico and Canada.
In the Official Gazette of the Federation, the agency announced the start of the process to examine the countervailing duty on welding wire from China. Changes in market conditions will be studied after a possible increase in price discrimination was detected, with a review period running from August 1, 2023, to July 31, 2024. In the case of thermoplastic rubber (styrene-butadiene-styrene), preliminary findings from the anti-dumping investigation indicate that imports from China are occurring under unfair practices, thus posing a threat to the domestic industry. Due to the lack of participation from Chinese exporters in the defense, a provisional countervailing duty of $0.8324 per kilogram has been imposed. Furthermore, the Ministry has launched an investigation into hot-rolled steel imports from China and Vietnam. Domestic producers, as well as importers, exporters, and the Chinese government, will have the opportunity to present evidence and arguments before a final decision is made. The investigation period is set from September 1, 2023, to August 31, 2024, while the damage analysis will cover from September 1, 2021, to August 31, 2024. A few days ago, U.S. Treasury Secretary Scott Bessent mentioned that during negotiations to avoid the 25% tariff, Mexico proposed matching the tariffs imposed by the U.S. government on China.
It is important to understand that these measures are not just defensive but also reflect Mexico's need to protect its domestic market in a global environment where trade tensions are becoming increasingly common. The actions taken can be seen as necessary steps to balance the trade deficit and strengthen the national economy, which is crucial in these uncertain times.
