Mexico’s Congress approved a sharp increase in import tariffs on goods from multiple countries. Proposed by Mexican President Claudia Sheinbaum in October, the new levies are set to take effect at the start of the new year. The measure is aimed primarily at China, but Brazil has emerged as a significant casualty. A wide range of products will face tariffs of up to 50% — including automobiles, Brazil’s leading export to Mexico.
The move comes with Mexico eyeing negotiations with the US government around the review of the USMCA trade agreement (which also involves Canada) and concerning a water treaty (which we will cover in more detail in today’s LatAm Report). Sheinbaum is also seeking relief from the remaining tariffs imposed by the US government.
Mexico and the US have the world’s largest bilateral trade relationship, but the Donald Trump administration has played hardball with its southern neighbor, accusing China of using Mexico as a backdoor into the US market.
You’re missing out on the full story
Get smarter on Brazil and Latin America
Get access now!The full picture. The sharpest takes. All in your inbox, every day:
- 🏆 Award-winning journalism, trusted worldwide
- 📊 Exclusive charts and analyses
- 🗃️ Archive access
- 💬 Commenting
