Lula government says it ‘closely follows’ increase in tariffs in Mexico

The Ministry of Development, Industry, Commerce and Services (Mdic) reported that the Brazilian government is closely monitoring the tariff reform approved by the Mexican Congress, which will affect imports from all countries that do not have free trade agreements with Mexico.

In a note released on Friday night, the 12th, the department headed by vice-president Geraldo Alckmin said it was awaiting the publication of the final text of the law to assess its impacts on Brazilian exports.

This is the first official demonstration by the Brazilian government since the Mexican Congress approved, on Wednesday the 10th, an increase of at least 35% in import tariffs on 1,400 products from 12 countries with which it does not have trade agreements, including Brazil and China – the latter being the main affected country. The expectation is that the new tariffs will come into force from January 1, 2026.

Also read: Mexico: Congress approves raising tariffs on products from China and other countries

According to the Mdic, the tariff increase should not affect the majority of bilateral trade in the automotive sector, which already has a sectoral free trade agreement (Economic Complementation Agreement No. 55 – ACE-55).

But he maintained that the Mexican government’s possible measures raise concerns that the tariff increase could erode existing bilateral preferences for other sectors and negatively impact trade and investment between the two countries, depending on the final lists published.

“Brazil and Mexico maintain an economic and political relationship marked by frank dialogue and a shared strategic vision”, continues the text. It was also reported that the government has been in contact with Mexican authorities to discuss the possible effects of the tariff changes.

Finally, the note stated that the Brazilian government reinforced the defense of unilateral decisions that could affect bilateral trade being examined “in light of the mutual commitment to predictability, legal certainty and the deepening of productive integration”.

And he said that Brazil “will continue to engage in constructive dialogue with Mexico”, with the aim of preserving the positive environment of cooperation and ensuring favorable conditions for trade and investment between the two countries.