Navigating Mexico’s Tariff Increases: A Guide for Businesses

Navigating Mexico’s Tariff Increases: A Guide for Businesses

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Introduction

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On April 22, 2024, Mexico implemented significant tariff increases affecting a wide range of goods. These changes have implications for businesses engaged in international trade. In this blogpost, we’ll explore the details of the tariff adjustments and discuss how Kendrick Trade can assist businesses in navigating this complex landscape.

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The Mexico Tariff Increases: What You Need to Know

1. Decree Overview

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The Mexican government issued a Decree amending the Tariff of the Law on General Import and Export Taxes. This Decree introduced temporary import tariffs on 544 Harmonized System(HS) codes. The affected products include steel, aluminum, textiles, clothing, footwear, wood, plastics, chemicals, and more.

2. Tariff Ranges

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The new tariffs range from 5% to 50%,depending on the specific product category. These adjustments aim to create fair market conditions and protect vulnerable sectors of Mexico’s domestic industry.

3. Implications for Businesses

            - Supply Chain Disruptions: Companies importing goods into Mexico must now navigate these tariff changes. Understanding the impact on their supply chains is crucial.

            - Cost Considerations: The increased tariffs directly affect import costs. Businesses need to assess how these changes impact their pricing strategies.

            - Compliance Challenges: Customs compliance becomes more critical than ever. Companies must ensure adherence to the revised tariff rates.

How Kendrick Trade Can Help

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US exporters are encouraged to review the list of impacted products – available here – and to take advantage of USMCA preferential treatment program where possible. Kendrick Trade specializes in USMCA qualifications and is positioned to help businesses navigate through these changes.

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Sources

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Diario Oficial de la Federación (DOF). (2024, April 22). Decree amending the Tariff of the Law on General Import and Export Taxes. Retrieved from https://www.dof.gob.mx/nota_detalle.php?codigo=5724207&fecha=22/04/2024#gsc.tab=0

International Trade Administration. (2024, April 22). Mexico Tax and Tariff Increase 2024. Retrieved from https://www.trade.gov/market-intelligence/mexico-tax-and-tariff-increase-2024

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