In the ongoing exchange of rising duties stemming from the recent U.S. steel and aluminum actions, Mexico’s Official Gazette published the decree with the list of products subject to retaliatory tariffs that Mexico is imposing to U.S. steel and farm products.

Here is a general overview of these changes.

  • Mexico is suspending the preferential tariff treatment (NAFTA) for 71 HS numbers originating in the U.S. in chapters 02, 04, 08, 16, 20, 21, 22, 72, 73, 76, 84, 89, and 94. This is effective June 5, 2018.
  • A main rate has been established for these 71 HS numbers, applicable only for U.S. imports to Mexico. Main rates range between 7% and 25%. This is effective June 5, 2018. Only HS numbers from chapter 02 and 04 are going to apply a provisional main rate from June 5, 2018 - July 4, 2018, and starting July 5, 2018, will enter in force the definitive main rate.
  • Additionally, the main rate of 186 HS numbers of chapters 72 and 73 has been increased to 15%. This is effective from June 5, 2018 - January 31, 2019.
  • In order to differentiate between the goods to which the measures are to be imposed from those that will not be affected, this decree created the HS number 1601.00.02 that distinguishes pork sausages from other species.
  • Four HS numbers from chapter 73 were updated in their HS description. This is effective June 5, 2018.
  • Three HS numbers from chapter 72 were expired. This is effective June 5, 2018.

Mexican importers will need to assess immediately if any of their products are impacted and ensure that import declarations are filed correctly.