Mexico has recently implemented several tariff changes and updates that may affect various industries and trade relationships. Here's a summary of the key developments: Recent Tariff Changes: Increased Tariffs on Textiles and Apparel (December 2024): Mexico significantly increased import tariffs on many finished textile goods (from 20-25% to 35%) and textile inputs (from 10% to 15%). These measures, effective December 20, 2024, also include restrictions on temporary imports of these goods under the IMMEX program (Manufacturing, Maquiladora, and Export Services Industry). This program previously allowed duty-free import for manufacturing or assembly before export. The changes aim to protect Mexico's domestic textile industry. However, these increases do not apply to countries with which Mexico has a Free Trade Agreement, such as those under the USMCA.   New Import Tariffs on Specified Goods (April 2024): In April 2024, Mexico established import tariffs ranging from 5% to 50% on a list of specified products. This measure, effective for two years from April 23, 2024, also changed the criteria for the "Regla Octava" (Rule 8) exemption, which previously allowed temporary imports of "sensitive" products (like aluminum, steel, textiles, sugar, tobacco) to be duty-free. These temporary imports are no longer eligible for this exemption and may now be subject to Most-Favored-Nation (MFN) duties, in addition to the new tariffs if applicable.   IEEPA Tariffs by the U.S. (February-March 2025): The United States, under President Trump's executive orders related to a national emergency declaration, implemented additional tariffs on imports from Mexico (and Canada and China) starting in February and March 2025. These tariffs were based on the International Emergency Economic Powers Act (IEEPA). Initially, a 25% additional tariff was imposed on goods from Mexico that did not meet the USMCA rules of origin. However, by March 7, 2025, the U.S. largely reversed these additional tariffs on imports from Mexico and Canada that qualify for USMCA preferential treatment. A 10% additional tariff remains on potash imports from Mexico that do not qualify for USMCA preference.   Potential Future Tariffs: As of April 2025, there was uncertainty regarding potential further tariffs, particularly on automobiles and automotive parts, with some reports suggesting possible implementation in early April. Mexico has indicated it would respond with counter-tariffs if such measures were enacted by the U.S. Key Considerations and Impacts: USMCA: The United States-Mexico-Canada Agreement generally exempts qualifying goods traded between the three countries from tariffs. Recent tariff actions by both countries have included exemptions or modifications for goods meeting USMCA rules of origin. IMMEX Program: The changes to the IMMEX program, particularly for textiles and apparel, are causing disruptions for companies relying on this program for duty-free temporary imports and subsequent export, especially to the U.S.   Supply Chain Adjustments: Businesses may need to re-evaluate their supply chains, consider relocating fulfillment operations, or absorb increased costs due to the new tariffs.   Trade Tensions: The tariff actions, particularly those involving the U.S., reflect ongoing trade tensions and a focus on reciprocal trade practices. Impact on Specific Industries: The textile, apparel, automotive, steel, and aluminum industries are particularly affected by these recent tariff updates. Mexico's Trade Agreements: Mexico has an extensive network of free trade agreements. It has 13 FTAs with 50 countries, including:   The United States-Mexico-Canada Agreement (USMCA, replacing NAFTA)   Free Trade Agreements with the European Union, European Free Trade Area, Japan, Israel, and ten countries in Latin America.   The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes 12 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK, and Vietnam.   These agreements generally aim to eliminate or reduce tariffs and other trade barriers between member countries. The recent tariff changes by Mexico have primarily targeted goods from countries without such agreements or have modified the conditions under existing programs like IMMEX.