Mexico has increased tariffs on products that impact its domestic textile industry, but this decision is not related to the return of U.S. President Donald Trump.
During a press conference on Thursday, Mexico’s economy minister Marcelo Ebrard revealed that its neighbor to the north, as part of the United States-Mexico-Canada Agreement, , will not be affected by the import hikes. The import tariffs will increase to 15 percent on 17 categories of textile merchandise, including denim and polyester staple fibers, and 35 percent on 138 finished clothing products like knitwear, jackets, and lingerie.
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The tariff increases, which will remain in effect until April 22, are not targeting any specific country, according to Ebrard. Instead, the goal is to support Mexico’s textile industry and safeguard it against unfair competition. This competition has caused an average annual decline of 4.8 percent in Mexico’s GDP and has resulted in the loss of 79,000 jobs in recent years.
The decision is accompanied by restrictions on imports through the import duty-deferral program called IMMEX. According to Ebrard, this program has been misused as a tax-free loophole for selling raw materials and components domestically instead of using them for export production. If this loophole is not closed and the Mexican industry continues to be undermined by unethical practices, an additional 72,000 jobs may be lost.
“We aim to boost the growth of our national industry through this initiative, as one of our key goals for shared prosperity is to enhance the domestic content in all our consumer goods,” stated Ebrard. “By increasing the presence of Mexican content, we can generate more employment opportunities within our country while fostering fair market conditions.”
Mexico has recently imposed tariffs on certain goods from China, such as aluminum, plastics, and steel. These tariffs were implemented in response to concerns from the United States that cheap Chinese products could be entering North America through Mexico, potentially undermining local production and jobs. To address this issue, the Mexican Economy Ministry has announced plans to conduct “cleaning” raids in all 32 states of Mexico, aimed at curbing the flow of illicit products, particularly from China.
President Claudia Sheinbaum has issued a warning to the United States, expressing Mexico’s intention to respond to President Trump’s threats of increasing tariffs by 25 percent. Sheinbaum indicated that Mexico would implement retaliatory taxes of its own, which could potentially jeopardize the trade deal negotiated by the previous administration.
During a press conference in late November, Sheinbaum emphasized the benefits of the treaty for all three economies, including the United States, Canada, and Mexico. She stated that the advantages are recognized by businesses and governments in these countries. In light of potential tariffs, Mexico is making preparations to increase its own tariffs if necessary.
