Mexico raised tariffs of up to 210 percent on sugar imports from countries with which it doesn’t have a trade deal, part of a plan to protect the domestic industry from falling prices.
The measure, which takes effect on Tuesday, includes tariffs of 156 percent and 210 percent on cane sugar, refined liquid sugar, beet sugar and syrups, according to the official gazette, which couched the move as a way to stave off “distortions” in international trade.
Previously, the government-imposed tariffs on imports of around $0.36 per kilogram on some sugar imports.
Mexico has a large export-driven farm sector, led by fruits like avocados and tomatoes, as well as two-way trade in sugar going back decades.
The agriculture ministry echoed the protectionist push for sugar.
“In light of falling international prices and oversupply, and in accordance with our country’s international commitments, sugar import tariffs have been updated to protect jobs and strengthen domestic production,” the ministry wrote in a post on X.
The sugar strategy forms part of President Claudia Sheinbaum’s “Plan Mexico” that aims to boost economic growth by strengthening local production.
The measure targets countries with which Mexico does not have trade deals in place, including Brazil, which is one of the main exporters of sugar to Mexico.
Mexico is in the final stages of trade negotiations with the US prior to the review of the US-Mexico-Canada (USMCA) free trade agreement next year.
Due in large part to the uncertainty, the Mexican economy has been hit by the on-again, off-again US tariffs that apply to steel, cars and other imports not covered under USMCA. It slightly contracted in the third quarter, stoking recession fears for Latin America’s No. 2 economy.
Late last month, U.S. President Donald Trump extended a reprieve for additional export duties on Mexican products, fueling hopes for a broader deal Sheinbaum.
As trade negotiations progress, a Sheinbaum plan to impose steep tariffs on Chinese imports has been delayed until at least December as mounting opposition from Mexico’s private sector and even members of the ruling party stalls congressional debate over the export duties.
Mexican manufacturers argue that the proposed tariffs would sharply raise production costs, given their heavy dependence on Chinese imports for machinery, components and raw materials.
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