Mexico tariffs: the products that Mexico exports the most to the US


If an agreement is not reached soon, the United States will apply a tariff rate of 5.0 percent on all of its Mexican imports as of June 10, generating first damage to the Mexican economy estimated at 17 billion 500 million dollars.

But what products would be most affected? Below we present the goods that Mexico exports the most to the United States.
But what products would be most affected? Below we present the goods that Mexico exports the most to the United States.

If the government of President Andres Manuel Lopez Obrador does not immediately stop the illegal migration to US territory, Washington will impose tariffs starting at a rate of 5.0 percent to climb to a level of 25 percent.

Automotive industry

Cars, accessories and spare parts
Cars, accessories and spare parts

Mexico exported a total of 346.5 billion dollars last year to its most important business partner, according to the Census Bureau. Of that amount, 115 thousand 800 million dollars were in cars, accessories and spare parts. Large automakers such as General Motors and Fiat Chrysler have the bus, truck, passenger vehicle, vehicle accessories and production components in Mexico.

Televisions and computers

Computers, televisions and video technology
Computers, televisions and video technology

Another important item is that of computers, televisions and video technology, because exports of this type of Mexican merchandise to the United States totaled 36.6 billion dollars in 2018, according to data from the US Census Bureau. Mexico is a world leader in the assembly of electronic devices, only behind China. And the United States is its main market.

Farm products

Agricultural products
Agricultural products

Mexico sold to the United States agricultural products worth 12 thousand 500 million dollars in 2017. That amount even exceeded oil exports that totaled 10 thousand 300 million. The agricultural sector represents 4.1 percent of total Mexican exports to the northern neighbor.

Alcoholic drinks


In the alcoholic beverage sector, Mexico exported the US $ 5.2 billion worth of goods to the United States last year. Mexico sells more than 360 million boxes of beer to the United States, according to Beer Institute statistics.

According to the commercial agency, if the 5.0 percent tariff was applied in June, the costs for US importers of Mexican beer would increase by 12.5 million dollars. With the maximum rate of 25 percent, this amount would be close to 990 million dollars a year.


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Mexico, the third in Latin America with the highest tariffs

Although the US trade war on China is already under negotiation uncertain, tariffs in the world continue to be applied, especially among countries that do not have trade agreements with each other, which forces them to impose safeguards.

Statist data reveal that tariff rates vary greatly from one country and region to another. For example, in Brazil, they amount to 4 percent of the value of products on average, while in the Member States of the European Union it is reduced to 1.6 percent, according to World Bank data.

According to a map by Statista, Mexico is the third nation in Latin America with the highest tariffs, with an average of 4.4 percent, while Brazil and Argentina are 8 and 7.5 percent, respectively. However, the United States and Canada apply taxes on imports from countries with which they do not have treaties, of 1.6 and 0.8 percent.

The latest data from the World Trade Organization (WTO) say that tariffs in the last two years were concentrated between the United States and its partners, although it was Mexico that imposed the highest taxes on US imports, of 1 percent on average, while Canada and the European Union did so with 3.2 and 2.6 percent, respectively.

For the WTO, Canada was within the tariff limit of 3.2 billion dollars, so the retaliation limit of 3.2 billion dollars would be granted to Canada in response to the 2 billion dollars expected in steel exports. lost and a thousand 200 million dollars in aluminum exports lost if tariffs were imposed. That is to say, although it is not a successful case, for the organization it is a "balance of forces".

Data from the World Bank refer that food products, footwear, textiles, furs, animals, transport, plastics, and wood are usually the items with the highest export taxes, being that many of these taxes are applied as safeguard measures to avoid affecting local industries. Until 2017, taxes on food products amounted to 21 billion dollars.

The type of tariffs most used are the preferential ones, which were incorporated into a preferential trade agreement under which they promised to apply to the products of another country. In a free trade zone (such as the North American Free Trade Agreement), the preferential tariff rate is 0 for all.

Likewise, the coverage of the proportion of tariff lines with WTO bound rates also varies among countries and this varies according to the regions since, in Latin America, all countries consolidate all tariff lines. In Asia, consolidation coverage varies by less than 15 percent, while in Bangladesh some taxes exceed 50 percent of the value of the merchandise.

In the case of Mexico, recently Secretary of Economy (SE), Graciela Márquez Colín, said that our country would renew the tariffs on steel, footwear, and textiles to imports with which the country did not have commercial agreements.

In addition, a few weeks ago, the Ministry of Economy (SE) made the decision to reactivate the 15 percent safeguard on steel imports, from 25 to 30 percent for footwear, textiles, and clothing for a period of half a year.

The Mexican government and the private sector are in negotiations with the United States to eliminate tariffs under Section 232 after a tax of 25 percent was imposed on steel and 10 percent on Mexican aluminum almost a year ago.

According to the SE, the government holds talks with the private sector "we believe there is an opportunity to negotiate the elimination before the ratification of the Treaty between Mexico, the United States, and Canada."

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