Mexico decided to temporarily resume the 15% tariff on imported steel to support the local steel industry hit by the coronavirus epidemic.
On November 22, the Ministry of Economic Affairs announced that from November 23, it will temporarily resume the 15% safeguard tax on steel in countries that have not signed a free trade agreement with Mexico. This tariff will apply to about 112 steel products, including carbon, alloy and stainless steel flat products, rebar, wire, bars, profiles, pipes and fittings. According to the official statement, the government took this measure to try to solve the crises facing the international steel market, which are caused by reduced demand, global overcapacity, and the lack of healthy competitive conditions between the steel industries in different countries.
The tariff is valid until June 29, 2022, after which the liberalization plan will be implemented. Tariffs on 94 products will be reduced to 10% from June 30, 2022, to 5% from September 22, 2023, and expire in October 2024. The tariffs on 17 kinds of pipes will not expire after they are reduced to 5% or 7% (depending on the type) from September 22, 2023. The tariff on a galvanized flat steel (code 7210.41.01) will be reduced from 15% to 10% from June 30, to 5% from September 22, 2023, and from October 1, 2024 Will be reduced to 3%.
The United States and Canada, as Mexico’s partners in the United States, Mexico and Canada Agreement (USMCA), will not be affected by the new tariffs.
As early as September 2019, the Mexican Ministry of Economy announced the phasing out of the 15% guarantee tax, which was reduced to 10% in September 2021. The tax rate is expected to be reduced to 5% from September 2023, and for most products, it will expire in August 2024.
Post time: Nov-29-2021