Mexico: new 10% tariff from the U.S., but 85% of exports are exempt
WHAT HAPPENED
The U.S. imposed a 10% tariff on Mexican products that do not comply with the USMCA. 85% of exports are exempt; the remaining 15% will pay $10 for every $100 that enters the U.S. market.
WHY IT MATTERS
The impact is concentrated on electronic, textile manufacturing, and other products assembled in Mexico with parts from Asia or other regions. For those companies, selling in the U.S. becomes more expensive; those that comply with the agreement see no changes. The issue also enters the review of the USMCA.
AND FOR YOUR PORTFOLIO
For the portfolio, the direct effect is limited because the majority of Mexican exports are protected. The important signal is that companies with supply chains within North America have an advantage over those that depend on imported parts from outside the region.
💬 TELL IT LIKE THIS
“The tariff does not affect all of Mexico: it mainly increases costs for products made here with too many parts from outside North America.”