Mexico’s industrial sector — represented by CONCAMIN — has proposed the creation of a “tariff traffic-light” mechanism to complement the federal government’s plan to impose new duties on imports from countries with which Mexico does not have a trade agreement. The idea is to recognize the different levels of productive capacity across industries and prevent negative impacts on sectors where domestic output is limited.
The government’s original initiative includes tariffs ranging from 10% to 50% on 1,463 tariff lines across 17 sectors, including auto parts, textiles, footwear, plastics, furniture, steel, and home appliances. In response, CONCAMIN suggested classifying these tariff lines into three categories: “green” for sectors with a strong production base; “yellow” for those with limited but developing production; and “red” for categories with little or no national production, where higher tariffs would raise costs without generating jobs or boosting domestic industry.
According to the proposal, this classification would help ensure that the implementation of the new tariff package reflects the structural differences among industries. The industrial sector also emphasized the need to strengthen customs enforcement, since practices such as under-invoicing or smuggling could undermine the effectiveness of the new duties.
For its part, the Ministry of Economy stated that if the new tariffs are approved, they will be applied based on technical criteria to avoid affecting industries that depend on imported inputs. The Ministry also noted that the inputs considered for the tariff increases do not have more than 50% dependence on a single foreign supplier, and that there are alternative sources available for procurement.
The proposal is still under review in Congress, where lawmakers are evaluating how it could be implemented. Within this context, the “tariff traffic-light” aims to serve as a balanced alternative that supports domestic manufacturing while maintaining competitiveness and access to essential inputs.
Source: Expansión
