Background on Key Figures and Relevance
Cho Hyun, the newly appointed Foreign Minister of South Korea, recently addressed international media for the first time since his appointment in mid-July. His comments come as Mexico proposes a tariff plan that mirrors protective measures recently adopted by the United States.
South Korea, a significant trading partner with countries like China, India, Indonesia, Russia, and itself, is closely monitoring Mexico’s proposed tariff plan. This plan could potentially impact South Korean exports, as the country is a major supplier of automobiles, auto parts, textiles, footwear, steel and aluminum products, as well as home appliances to Mexico.
Mexico’s Tariff Proposal Details
As part of its 2026 economic package, the Mexican government plans to impose tariffs of up to 50% on approximately 1,400 tariff items imported from countries without which Mexico does not have a trade agreement. These countries include China, India, Indonesia, Russia, and South Korea.
In 2024, these countries accounted for 8.2% of Mexico’s total merchandise imports. The proposed tariffs would affect products such as automobiles, various auto parts, textiles, footwear, steel and aluminum products, as well as home appliances.
Impact on South Korean Exports
South Korea, home to global conglomerates like Hyundai, Samsung, and LG, exports automobiles, auto parts, and certain home appliances to Mexico. These sectors could be significantly impacted by Mexico’s tariff plan, should it receive Congressional approval by November 15 at the latest.
Key Questions and Answers
- Who is Cho Hyun? Cho Hyun is the recently appointed Foreign Minister of South Korea.
- What is Mexico’s tariff plan about? Mexico proposes to impose tariffs of up to 50% on around 1,400 tariff categories of goods imported from countries without existing trade agreements.
- Which countries are affected by Mexico’s tariff plan? The proposed tariffs will primarily affect countries such as China, India, Indonesia, Russia, and South Korea.
- What kind of products does South Korea export to Mexico? South Korea exports automobiles, auto parts, textiles, footwear, steel and aluminum products, and certain home appliances to Mexico.
- When will the tariff plan be approved? The Mexican Congress must approve the tariff plan by no later than November 15.
