Mexican List of Retaliatory Tariffs Took Effect June 5

June 5, 2018 by Tim Warren|Top News

Mexico released a list of U.S. goods that will face new tariffs as a result of the U.S. Section 232 tariffs that now apply to steel and aluminum from Mexico. Most of the new Mexican tariffs took effect June 5, while others will be phased in through July 5, Mexico said in the notice. The European Union and Canada also recently released their lists of retaliatory tariffs (see 1806010022), though neither has taken effect yet. The tariffs on U.S. goods are a response to the Trump administration's decision to end the exemptions from tariffs on steel and aluminum goods from the EU, Canada and Mexico (see 1805310028).

Mexico suspended NAFTA benefits for the items on the list and added tariffs of 7%, 10%, 15%, 20% or 25%. These 8-digit subheadings fall in the following chapters and headings (note that not all subheadings would necessarily be covered in the headings listed below):

Chapter 2: 0203
Chapter 4: 0406
Chapter 8: 0808
Chapter 16: 1601, 1602
Chapter 20: 2004, 2008
Chapter 21: 2106
Chapter 22: 2208
Chapter 72: 7208, 7209, 7210, 7211, 7212, 7213, 7214, 7216, 7225, 7226
Chapter 73: 7304, 7305, 7306,
Chapter 76: 7615
Chapter 84: 8414
Chapter 89: 8903
Chapter 94: 9403, 9405

The new tariffs don't apply to "IMMEX (maquiladora) transactions -- only to 'definitive' imports (akin to 'consumption entries' in the United States)," law firm Pisani & Roll said in an email. Promotional Sector Program "duty benefits have been extended to several tariff classifications in Chapter 72," in order "to protect IMMEX entities from having to pay the new duties on certain products," the law firm said. Mexico will treat goods with any indicator of being of U.S. origin "even if the origin of the good, as determined under the regular rules of origin, is not the" U.S., the firm said. Also, the country will add some duties to non-U.S.-origin goods in Chapters 72 and 73 "to protect Mexico from diversions of those products to Mexico now that they are subject to increased U.S. tariffs."