Latest news with #non-USMCA-compliant
The Star
3 days ago
- Business
- The Star
Canadian minister hails 'productive' Mexico meeting as US tariffs loom
Mexico's President Claudia Sheinbaum, Canada's Finance Minister Francois-Philippe Champagne, and Canada's Foreign Minister Anita Anand pose for a picture in Mexico City, in this undated handout photo obtained by Reuters on August 5, 2025. Mexico Presidency/Handout via REUTERS MEXICO CITY/TORONTO (Reuters) -Top Canadian ministers held a "productive" meeting with Mexican President Claudia Sheinbaum and some of her top officials during a visit to Mexico City on Tuesday, Canada's top diplomat said, as the two nations navigate a volatile tariff environment. Mexico's economy minister had signaled earlier in the day that talks would cover the two countries' policies in response to a volley of tariff announcements from U.S. President Donald Trump. The three countries have tightly bound economies. Canadian Foreign Minister Anita Anand said in a post on X that she and Finance Minister François-Philippe Champagne had spoken with Sheinbaum to reaffirm bilateral ties. Anand also met with her Mexican counterpart Juan Ramon de la Fuente, she said. "These discussions with the president and members of her government advanced key shared priorities in terms of economic growth, security and trade diversification," she added. Mexico's Economy Minister Marcelo Ebrard said earlier in the day that he was also set to speak with Champagne about the two countries' experiences in dealing with tariffs imposed on goods shipped to the United States. "They want to know how Mexico is getting these results," Ebrard told journalists. Mexico was able to avoid 30% tariffs on its shipments to the U.S. set to come into force last week, securing a 90-day pause to work on a trade deal with the government of U.S. President Donald Trump. Meanwhile, Trump slapped a 35% duty on many goods coming from Canada, hiking the rate from a 25% fentanyl-related tariff imposed earlier this year. "We're going to exchange experiences," Ebrard said. "They're paying a 35% tariff, and Mexico isn't." Mexico is still subject to the previously imposed 25% fentanyl tariffs, though goods sent under the United States-Mexico-Canada (USMCA) trade agreement - which are most of them - are exempt. Trump has said the U.S. would continue to levy a 50% tariff on Mexican steel, aluminum and copper and a 25% tariff on Mexican autos and on the non-USMCA-compliant goods. Mexican President Claudia Sheinbaum met with the Canadian finance minister, Francois-Philippe Champagne, as well as Foreign Minister Anita Anand, earlier in the day at Mexico's national palace. "We're strengthening the relationship between our countries," she said in a post on X. (Reporting by Kylie Madry and Diego Ore in Mexico City and Ryan Patrick Jones in Toronto; Editing by Sarah Morland and Stephen Coates)
Indian Express
3 days ago
- Business
- Indian Express
Mexico set to discuss US tariffs with Canada as ministers visit
Mexican Economy Minister Marcelo Ebrard said he is set to speak with Canada's finance minister, who is visiting Mexico City, later on Tuesday about the two countries' experiences in dealing with tariffs imposed on goods shipped to the United States. 'They want to know how Mexico is getting these results,' Ebrard told journalists. Mexico was able to avoid 30% tariffs on its shipments to the US set to come into force last week, securing a 90-day pause to work on a trade deal with the government of US President Donald Trump. Meanwhile, Trump slapped a 35% duty on many goods coming from Canada, hiking the rate from a 25% fentanyl-related tariff imposed earlier this year. 'We're going to exchange experiences,' Ebrard said. 'They're paying a 35% tariff, and Mexico isn't.' Mexico is still subject to the previously imposed 25% fentanyl tariffs, though goods sent under the United States-Mexico-Canada (USMCA) trade agreement – which are most of them – are exempt. Trump has said the US would continue to levy a 50% tariff on Mexican steel, aluminum and copper and a 25% tariff on Mexican autos and on the non-USMCA-compliant goods. Mexican President Claudia Sheinbaum met with the Canadian finance minister, Francois-Philippe Champagne, as well as Foreign Minister Anita Anand, earlier in the day at Mexico's national palace. 'We're strengthening the relationship between our countries,' she said in a post on X.
Straits Times
3 days ago
- Business
- Straits Times
Mexico set to discuss US tariffs with Canada as ministers visit
Sign up now: Get ST's newsletters delivered to your inbox MEXICO CITY - Mexican Economy Minister Marcelo Ebrard said he is set to speak with Canada's finance minister, who is visiting Mexico City, later on Tuesday about the two countries' experiences in dealing with tariffs imposed on goods shipped to the United States. "They want to know how Mexico is getting these results," Ebrard told journalists. Mexico was able to avoid 30% tariffs on its shipments to the U.S. set to come into force last week, securing a 90-day pause to work on a trade deal with the government of U.S. President Donald Trump. Meanwhile, Trump slapped a 35% duty on many goods coming from Canada, hiking the rate from a 25% fentanyl-related tariff imposed earlier this year. "We're going to exchange experiences," Ebrard said. "They're paying a 35% tariff, and Mexico isn't." Mexico is still subject to the previously imposed 25% fentanyl tariffs, though goods sent under the United States-Mexico-Canada (USMCA) trade agreement - which are most of them - are exempt. Trump has said the U.S. would continue to levy a 50% tariff on Mexican steel, aluminum and copper and a 25% tariff on Mexican autos and on the non-USMCA-compliant goods. Mexican President Claudia Sheinbaum met with the Canadian finance minister, Francois-Philippe Champagne, as well as Foreign Minister Anita Anand, earlier in the day at Mexico's national palace. "We're strengthening the relationship between our countries," she said in a post on X. REUTERS
Mint
4 days ago
- Business
- Mint
Mexico might be the shortcut exporters need to bypass US tariffs
T. K. Arun A 90-day window to cut a special deal has made Mexico a hot prospect for global exporters seeking to dodge steep Trump tariffs, without moving operations to the US. Trucks queue near the Mexico-US border before crossing the border. US President Donald Trump said he would hold off a planned tariff hike on Mexican products and instead keep duties at existing levels for 90 days. (File Photo: AFP) Gift this article The world is watching Mexico, not because of the 5.7 magnitude earthquake that has struck its Oaxaca region, or the prison riots in Veracruz that have claimed several lives. Such disturbances are not uncommon in the region. Instead, global attention is fixed on Mexico because it alone has secured a 90-day window to finalize tariff terms with the US, even after the 1 August deadline has expired. The world is watching Mexico, not because of the 5.7 magnitude earthquake that has struck its Oaxaca region, or the prison riots in Veracruz that have claimed several lives. Such disturbances are not uncommon in the region. Instead, global attention is fixed on Mexico because it alone has secured a 90-day window to finalize tariff terms with the US, even after the 1 August deadline has expired. This rare grace period is significant: it will delay investment decisions in many countries that export to the US and stall tariff-jumping investments into the US itself. Investors are in wait-and-watch mode. Also Read | Trump vows higher tariffs, India responds At present, Mexican exports of steel and copper to the US are subject to a 50% duty, just like similar imports from elsewhere. Automobiles and goods that are not compliant with the US-Mexico-Canada Agreement (USMCA) face a 25% tariff. In contrast, goods that meet USMCA requirements attract low or zero tariffs. For compliance, at least 75% of the value of the good must originate in the region covered by the agreement. To prevent someone from importing a good into Mexico at, say, $25 and then exporting it to the US at a marked-up value of $100—technically satisfying the 75% value-add requirement—the USMCA also demands substantial transformation of the good. This means the finished product must fall under a different customs classification from the imported input. If the US, at the end of this 90-day window, agrees to impose an import duty of just 5% (or even 10%) on non-USMCA-compliant imports from Mexico, it would create a compelling incentive for exporters from high-tariff countries to set up plants in Mexico rather than within the US, to bypass steep duties. Consider pineapples. Under the Harmonized System of Nomenclature (HSN), fresh pineapples are coded 08043000, while canned pineapple is classified as 20082000. Costa Rica, the world's largest exporter of pineapples, currently faces a 15% US import duty. But if Mexico secures a deal for a 5-10% tariff, a Costa Rican firm, or any other, could set up a canning plant in Mexico. Fresh pineapples could be imported, peeled, sliced, and canned there, then exported to the US. Because the canned product has a different HSN code, this fulfils the second condition to qualify as USMCA-compliant. Depending on the value added in Mexico, the canned pineapple may qualify to be exported on USMCA terms. If so, the product would be virtually tariff-free. Even if it doesn't qualify, it would still benefit from the lower Mexican rate. Also Read | Trump tariffs: Is the world watching globalization fall apart? In trade economics, when a domestic market is large enough, a country can raise tariff barriers to force foreign producers to invest locally in order to access that market—this is called tariff-jumping. But if nearly the same benefit can be gained by investing in a nearby lower-cost country with a concessional duty regime, companies might prefer that route. They get access to the target market while saving on labour and operating costs. Switzerland, for instance, faces a 39% tariff, the highest in Europe. It's a major exporter of optical, technical, and medical equipment to the US. If its attempts to negotiate a better deal by offering to invest heavily in the US fall through, it may have to shift production to North America. If Mexico secures a favourable tariff deal, Swiss firms would likely prefer producing in Mexico over the higher-cost US. Similarly, if Donald Trump withdraws the current exemption on pharmaceuticals and starts applying country-specific duties rather than sector-specific ones, Indian pharmaceutical companies may also find it worthwhile to relocate some US-focused production to Mexico. That gives Mexico a major incentive to offer Washington concessions in return for a favourable tariff agreement. If it succeeds, it stands to attract a wave of foreign investment aimed at the US market. For now, the uncertainty holds everything up. Some exporters might decide to absorb the tariffs and lose share in the US. Others may be ready to relocate production to North America, but can't act until Mexico's deal is finalized. If Mexico doesn't secure a concessional tariff, some of those investments may flow directly into the US instead. So Mexico today is far more relevant than just for its Aztec and Mayan heritage, the cocoa that France turned into chocolate, the Mexican wave at football matches, or even the Coco Bongo nightclub in Cancún. Time to raise a glass of tequila, and perhaps send a delegation led by Shashi Tharoor to Tenochtitlan, or Mexico City, as it's now known? Views expressed are personal. Topics You May Be Interested In
NDTV
01-08-2025
- Business
- NDTV
Trump Releases Revised Tariffs: India Remains At 25%, Pak's Rate Slashed
Washington: US President Donald Trump has signed a new executive order slapping higher tariffs on dozens of trading partners ahead of a Friday trade deal deadline -- his latest bid to reshape global trade in favour of US businesses. The higher import duty rates from 10 per cent to 41 per cent are set to start in seven days for 69 trading partners, according to the order. The duties ranged as high as 41 per cent on Syria, 35 per cent on many goods from Canada, 50 per cent for Brazil, 25 per cent for India, 20 per cent for Taiwan and 39 per cent for Switzerland. Meanwhile, duties on Pakistan imports have been slashed from 29 per cent to 19 per cent. This was alongside various levels of duties reflecting trade deals struck between Washington and major partners like the European Union and Japan. The order said that goods from all other countries not listed in an annex would be subject to a 10 per cent US tariff rate. More Deals On The Way Trump's order said that some trading partners, "despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters." Officials from the Trump administration told reporters that more trade deals were yet to be announced as Trump's higher "reciprocal" tariff rates were set to take effect. "We have some deals," the official said. "And I don't want to get ahead of the President of the United States in announcing those deals." Canada And Mexico An exemption for Canadian and Mexican goods entering the country under a North American trade pact remained in place, according to the White House. The Trump administration issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent from 25 per cent previously, saying Canada, the second-largest US trading partner after Mexico, had "failed to cooperate" in curbing fentanyl flows into the US. The higher tariffs on Canadian goods contrasted sharply with Trump's decision to grant Mexico a 90-day reprieve from higher tariffs of 30 per cent on many goods to provide more time to negotiate a broader trade pact. Meanwhile, the extension for Mexico avoids a 30 per cent tariff on most Mexican non-automotive and non-metal goods compliant with the US-Mexico-Canada Agreement on trade and came after a Thursday morning call between Trump and Mexican President Claudia Sheinbaum. Trump said the US would continue to levy a 50 per cent tariff on Mexican steel, aluminium and copper and a 25 per cent tariff on Mexican autos and on non-USMCA-compliant goods subject to tariffs related to the US fentanyl crisis. "Additionally, Mexico has agreed to immediately terminate its Non-Tariff Trade Barriers, of which there were many," Trump said in a Truth Social post without providing details. Brazil Trump hit Brazil on Wednesday with a steep 50 per cent tariff as he escalated his fight with Latin America's largest economy over its prosecution of his friend and former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies. South Korea And India South Korea agreed on Wednesday to accept a 15 per cent tariff on its exports to the U.S., including autos, down from a threatened 25 per cent, as part of a deal that includes a pledge to invest $350 billion in US projects to be chosen by Trump. But goods from India appeared to be headed for a 25 per cent tariff after talks bogged down over access to India's agriculture sector, drawing a higher-rate threat from Trump that also included an unspecified penalty for India's purchases of Russian oil. Although negotiations with India were continuing, New Delhi vowed to protect the country's labour-intensive farm sector, triggering outrage from the opposition party and a slump in the rupee. China Looming over the global economy is also an unresolved trade tussle between the United States and China. Beijing is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after the two largest economies reached preliminary deals in May and June to end escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Here's The New Tariff List Countries and Territories Reciprocal Tariff, Adjusted Afghanistan 15% Algeria 30% Angola 15% Bangladesh 20% Bolivia 15% Bosnia and Herzegovina 30% Botswana 15% Brazil 10% Brunei 25% Cambodia 19% Cameroon 15% Chad 15% Costa Rica 15% Côte d`Ivoire 15% Democratic Republic of the Congo 15% Ecuador 15% Equatorial Guinea 15% European Union: Goods with Column 1 Duty Rate > 15% 0% European Union: Goods with Column 1 Duty Rate < 15% 15% minus Column 1 Duty Rate Falkland Islands 10% Fiji 15% Ghana 15% Guyana 15% Iceland 15% India 25% Indonesia 19% Iraq 35% Israel 15% Japan 15% Jordan 15% Kazakhstan 25% Laos 40% Lesotho 15% Libya 30% Liechtenstein 15% Madagascar 15% Malawi 15% Malaysia 19% Mauritius 15% Moldova 25% Myanmar (Burma) 40% Mozambique 15% Namibia 15% Nauru 15% New Zealand 15% Nicaragua 18% Nigeria 15% North Macedonia 15% Norway 15% Pakistan 19% Papua New Guinea 15% Philippines 19% Serbia 35% South Africa 30% South Korea 15% Sri Lanka 20% Switzerland 39% Syria 41% Taiwan 20% Thailand 19% Trinidad and Tobago 15% Tunisia 25% Turkey 15% Uganda 15% United Kingdom 10% Vanuatu 15% Venezuela 15% Vietnam 20% Zambia 15% Zimbabwe 15%
