South Korea Asks Mexico for Exemptions Ahead of 2026 Tariffs

South Korea has asked Mexico to give “special attention” to South Korean companies as the country prepares to impose new tariffs of between 5% and 50% on imports from countries without a free trade agreement. The measures are scheduled to take effect on Jan. 1, 2026. The request comes less than two weeks before the tariffs enter into force and amid concerns over their potential impact on future investment and bilateral trade.

Mexico is South Korea’s largest trading partner in Latin America. Major South Korean companies—including Hyundai and Kia in the automotive sector, as well as Samsung and LG in home appliances—have significant manufacturing operations in Mexico, using the country as an export platform to the United States and Canada under the US-Mexico-Canada Agreement (USMCA).

The appeal was made by South Korean Vice Minister for Trade Park Jung-sung during a meeting in Seoul with Mexican Ambassador Carlos Peñafiel Soto, according to a statement released after the talks. Park “requested special attention from the Mexican government so that these tariff measures do not affect future investments by South Korean companies in Mexico or bilateral trade,” the statement said.

Park acknowledged that amendments approved by the Mexican Senate partially reflected South Korea’s concerns. However, he said further adjustments are needed and urged Mexican authorities to adopt measures that would minimize the impact on South Korean firms “during the implementation process” of the tariffs.

He also called for the resumption of negotiations toward a bilateral free trade agreement between South Korea and Mexico, arguing that renewed talks would help ensure a stable trade and investment environment and strengthen cooperation in advanced industries.

During the meeting, Park raised the upcoming review of the USMCA, scheduled for next year, and said the agreement should continue to function as a free trade framework for North America.

Mexican authorities have said the new tariffs are intended to protect sectors considered strategic. The government has denied that the measures are a response to external pressure or that they are aimed at China or any specific country. Mexico does not have a free trade agreement with South Korea or China.

In 2024, Mexico’s main imports from South Korea were concentrated in machinery parts and accessories, totaling US$2.528 billion. From January to December 2024, South Korean foreign direct investment in Mexico reached US$1.296 billion. Most of this amount came from reinvested earnings at US$861 million, followed by intercompany accounts totaling US$431 million and new investments. Between 1999 and 2024, cumulative South Korean FDI in Mexico totaled US$11.834 billion. In September 2025, Mexico recorded exports of US$509 million to South Korea and imports of US$1.856 billion, resulting in a trade deficit of US$1.346 billion.

Some analysts link the tariff plan to pressure from Washington ahead of the USMCA review and ongoing trade disputes between the United States and Beijing. South Korea has previously said the overall impact of the tariffs would be “limited,” citing reductions from the original proposal and the continuation of tariff reduction or exemption programs for intermediate goods, with favorable adjustments for sectors such as auto parts, steel and home appliances.