Mexico Unveils Tariff Reforms to Correct Trade Imbalances

According to a top government official, the Mexican government is preparing to submit a bill to Congress that would reform the country's tariff model. The goal of this proposed legislation is to "correct" trade imbalances and bring in an estimated 70 billion pesos ($3.76 billion) in additional revenue for the state.

Deputy Minister for Revenues Carlos Lerma revealed that the economy ministry will be spearheading this initiative, with a focus on addressing trade imbalances in certain sectors, such as the automotive and manufacturing industries. However, Lerma did not provide specifics on how the tariffs might be adjusted.

The Finance Minister, Edgar Amador, noted that these new tariff measures would apply to countries with which Mexico does not currently have trade agreements. This suggests the reforms could impact Mexico's trade relations with nations outside of its existing free trade agreements, such as the one it shares with the United States and Canada.

Mexico's top trade partner is the United States, and the bulk of its trade with the U.S. is conducted under the terms of their free trade agreement. This has shielded much of Mexico's trade with its northern neighbor from the cascade of tariffs imposed by the Trump administration.

However, the Mexican government is now seeking to address imbalances in its trade relationships, particularly as the country faces pressure from the U.S. to limit its ties with economic rival China, which has been competing with the United States for influence in the region.