Mexico to Impose 36.23% Tariff on Wire Rod Imports from Vietnam

Forex - Mexico will impose a customs duty of 36.23% on the import of steel wire sourced from Vietnam. The decision announced in a national newspaper marks Mexico's latest move to limit imports from Asia following its imposition of tariffs on Chinese steel and inexpensive clothing. The government also recently conducted a raid on a shopping center in Mexico City selling low-cost Asian products and pledged to take further action to protect local industry. The government stated that it has been conducting an investigation since late 2023 following complaints from Mexican companies Electrodos Infra SA de CV and Plasticos y Alambres SA de CV about unfairly priced steel wire imports. The companies argued that the national industry would "worsen" if imports from Vietnam continue. In its announcement, the Ministry of Economy identified Kim Tin Group Corporation as a company involved in unfair pricing; however, the tariff applies broadly to all Vietnamese exporters. According to the Ministry of Economy, the market share of Mexican steel wire producers has diminished in recent years, while the market share of Vietnamese importers has increased by more than 10 percentage points, reaching 18.6% by 2023. The new tariff will remain in effect for at least five years and may be extended.