Seoul: The government convened a meeting with the private sector on Wednesday to deliberate South Korea's strategic response and assess the impact of Mexico's recent decision to increase tariffs on imports from countries lacking a free trade agreement (FTA), as reported by the industry ministry.
According to Yonhap News Agency, the discussions followed the Mexican government's announcement to impose higher tariffs on imported goods such as textiles, steel, and automobiles from countries without trade agreements with Mexico, including South Korea, China, and India.
The anticipated tariff hikes are expected to significantly affect South Korea's automotive and home appliances industries. Many Korean companies have established manufacturing plants in Mexico, primarily to export goods to the United States without tariffs. However, this advantage has been curtailed by the tariff policies implemented during the Donald Trump administration.
Under the previous trilateral free trade agreement signed during Trump's tenure, Mexico and Canada were able to export goods to the U.S. at nearly zero tariff rates. However, the current scenario exposes them to substantial tariffs.
The Ministry of Trade, Industry and Energy emphasized its commitment to mitigating the potential negative effects of Mexico's tariff hike plan on Korean businesses.