Economics: New tariffs on Chinese products approved, with a big share of intermediate products and M&E
On December 10th, tariffs on 1,463 products for countries with which Mexico does not have a trade agreement were approved, after the initiative was presented to Congress by the Ministry of the Economy last September. As we mentioned in our September 30 Economic Outlook, these tariffs were proposed as a concession primarily to the U.S., but also to Canada, to enter the USMCA review/renegotiation process this year on better terms, given that the tariff classifications with the greatest impact are those for which China has gained significant market share in Mexico in recent years. In our opinion, the potential implication of these tariffs has not received sufficient attention in terms of lost competitiveness for production chains that have positioned themselves in the export market in recent years, nor regarding their possible resulting inflationary impact.
Regarding last week's indicators, it was reported that in December, the consumer inflation rate stood at 3.69% year-on-year, compared to 3.8% in November. This is a modest reduction caused by slight declines in both the non-core and core components. On the other hand, industrial production continued to show weakness in November, contracting -0.1% YoY in the month and maintaining a decline of -1.4% for the first eleven months of the year. In line with this news, the consumer confidence indicator for December 2025 fell by -2.4 points compared to the same month of the previous year, mainly because households perceive that the country's current and expected economic situation is not favorable.
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