South Korea on Friday, September 19, compared the tariff plan announced by Mexico with the trade measures adopted by the United States, at a time when the Asian country is cautiously watching the initiative of its main trading partner in Latin America, where its conglomerates have a strong presence in the automotive and home appliance sectors.
“Mexico’s decision to adopt tariff measures similar to those of the United States was received with great attention,” said Foreign Minister Cho Hyun during a press conference at the Foreign Correspondents’ Club in Seoul.
Cho responded to a question about Seoul’s level of concern regarding Mexico’s plan to impose tariffs of up to 50 percent on products from countries with which it does not have a free trade agreement, including South Korea.
The foreign minister added that for now they are still in the phase of “closely examining and reviewing what kind of disadvantages South Korean companies might face.”
The planned Mexican tariffs, which local authorities say are intended to protect the domestic industry from dumping practices, would be imposed in numerous sectors, including automobile manufacturing, vehicle parts, steel, aluminum, and household appliances.
Which South Korean products will be affected by Mexican tariffs?
South Korean companies are present in the Latin American country primarily in the automotive sector, with Hyundai and Kia, and in the household appliance sector, with Samsung and LG, large conglomerates that take advantage of the tariff-free export benefits derived from Mexico’s free trade agreement with the United States and Canada.
Seoul has adopted a cautious stance because the new package still lacks details and must be approved by the Mexican Congress by November 15 to take effect in 2026.
The South Korean Ministry of Commerce recalled in a statement on Wednesday that South Korean companies were relatively protected during the 2023 and 2024 tariff increases thanks to exemption programs in force in the Latin American country.
Mexico’s plan has added to Seoul’s trade concerns amid the stalled formalization of its pact with the United States to reduce US tariffs on several South Korean products, including automobiles, from 25 percent to 15 percent.
Source: elfinanciero
