COPARMEX Urges Gradual Import Tariff Policy to Avoid Pressures

The Employers’ Confederation (COPARMEX) urged the Mexican government and Congress to implement tariff increases on imports from China and other non-trade-agreement countries gradually, warning that a sudden rise could trigger inflation and hurt Mexican consumers.

The Chamber of Deputies is currently debating President Claudia Sheinbaum’s proposal to impose tariffs of up to 50% on imported goods from Asia, including automobiles, steel, and textiles, as a measure to counter undervalued prices and create fairer competition between domestic and foreign industries.

COPARMEX acknowledged the importance of boosting domestic production and ensuring fair conditions against unfair international trade practices. However, its president, Juan José Sierra, cautioned that Mexico’s industrial base still lacks the infrastructure to immediately replace certain imported goods, such as footwear, home appliances, school supplies, toys, and household items, which could lead to shortages and higher production costs.

In a statement, the business organization warned that the proposed tariff hike could put upward pressure on inflation and directly weaken Mexican families’ purchasing power.

“If Mexico adopts abrupt tariff increases without addressing its industrial structure, the result could be the opposite of what is intended: Mexican manufacturing chains would lose competitiveness, and the goods we export to the United States and Canada would become more expensive, undermining regional goals to attract investment, create jobs, and strengthen market presence against Asia and Europe,” COPARMEX stated.

Sierra also warned that setting compensatory duties or minimum import prices without proper analysis could encourage smuggling and informality, undermining fair competition and tax revenues.

To ensure a smooth transition toward import substitution, COPARMEX proposed a dialogue-based approach involving key production sectors, complemented by financial incentives and support programs to strengthen MSMEs.

The organization also emphasized that any measures must align with USMCA and Mexico’s industrial development plan, in order to attract investment, generate employment, and improve competitiveness with regions like Asia and Europe.