Mexico: Mexico's proposed tariff hikes on certain imports are expected to have a limited impact on South Korean exports, as indicated by the country's industry ministry.

According to Yonhap News Agency, the ministry shared this assessment during an emergency meeting with Korean automobile, auto parts, and steel companies. The meeting was convened after Mexico's Senate approved plans to implement tariff hikes starting next year on imports of automobiles, auto parts, textiles, steel, and other goods from countries without a free trade agreement with Mexico, which includes South Korea.

Under the new plan, Mexico intends to impose tariffs of 25 percent on imported auto parts, 25-30 percent on washing machines, 25 percent on refrigerators, and 30 percent on microwaves. The ministry noted that these rates have been reduced from initially higher proposals, partially due to South Korea's diplomatic efforts to address concerns through discussions between trade and foreign ministers of the two countries.

The ministry emphasized that the planned tariff hikes will likely have a limited effect on South Korean exports because Mexico has established tariff reduction programs specifically for imports of intermediate goods, which are pivotal export items from Seoul to Mexico.

Mexico has been a significant manufacturing base for South Korean automobile and home appliance companies, where Korean firms import intermediate goods from South Korea to produce finished products in Mexico. These products are then exported to North America under the United States-Mexico-Canada Agreement.

The ministry has committed to closely monitoring the effects of Mexico's tariff plan on Korean businesses and aims to minimize any potential damage to domestic industries.