News

New Tariffs Anticipated for Mexican-Originated Goods

On May 30, the White House announced that it will impose a 5% tariff on all Mexican-origin goods as of June 10. This additional tariff will increase to 10% on July 11, and by 5% each month thereafter until the rate reaches 25% on Oct. 1. According to a statement from the White House, these additional tariffs will remain in place until Mexico acts to address illegal immigration through Mexico into the United States.

According to The Vision Council, these tariffs will be applied to all Mexican-origin products; therefore, optical companies with Mexican-based supply chains will be impacted. No information regarding exclusions or exemptions was published, nor was any information made available regarding the rules to be applied for determining whether an imported product is of Mexican-origin.
 
From The Vision Council: This action comes at a complicated time in U.S.-Mexico trade relations. Mexico, Canada and the United States recently resolved issues surrounding Section 232 duties assessed on steel and aluminum products. That agreement removed one obstacle to ratifying the United States-Mexico-Canada Agreement (USMCA), the trade agreement intended to replace The North American Free Trade Agreement (NAFTA). Whether Mexico agrees to move toward ratifying the USMCA considering yesterday’s announcement remains to be seen. Retaliation of Mexico on the United States in the form of implementing duties on U.S.-origin products could further impact The Vision Council’s members.