Dec. 11 at 7:14 PM
Mexico’s senate approves a bill to raise tariffs to as high as 50% on cars, steel & other goods from China and other Asian countries with which it lacks a trade agreement.
Mexico has become a major destination for Chinese-made vehicles, which acct for almost 1/3rd of the est'd 1.6M units sold in Mexico this year.
Automakers w/ manufacturing operations in Mexico such as
$GM $F $STLA & KIA will still be allowed to import vehicles made in China tariff-free
Mexico has scaled back the duties from the initial announcement following consultations w/ companies, foreign govts, & stakeholders
Mexico has free-trade agreements w/ more than 50 nations - China & South Korea stand out as large exporters w/o a trade agreement w/ Mexico
Mexico became the top foreign supplier of goods to the US under the USMCA signed by President Trump in 2018 & is now also the top buyer of US goods.
$EWW $FXI