Mexico’s new tariff hikes alarm Korean exporters

Concerns are mounting over the operations of Korean companies in Mexico after the Latin American nation on Wednesday (local time) approved tariff hikes of up to 50 percent on 1,463 products from Asian countries that lack a free trade agreement (FTA). The affected products include machinery, auto parts and electronic components, which account for about 30 percent of Korea’s exports to Mexico — its largest trading partner in Latin America. Since 1993, Korea has recorded an annual trade surplus with Mexico. During the first three quarters of this year alone, Korea’s trade surplus with Mexico exceeded $12 billion. Given Mexico’s importance for Korea’s trade, the Korean government had asked Mexico to exempt Korean products from the tariff hikes after the administration of President Claudia Sheinbaum proposed the measure in September. At the time, the Ministry of Trade, Industry and Resources said it would continue monitoring the issue and work with industry officials to minimize the negative impact on Korean businesses. However, the ministry ultimately failed to secure exemptions f

Mexico’s new tariff hikes alarm Korean exporters