Mexico Stocks Surge as Tariff Relief Deal Boosts Exports to US

Mexico has announced that up to 90% of its exports to the United States could benefit from a recent tariff relief deal. This agreement, reached on Thursday, is expected to significantly boost the number of compliant companies exporting to the U.S. under the regional trade pact. The deal aims to enhance trade relations between the two nations by reducing tariffs on a wide range of goods, including textiles and apparel.

The tariff relief is a result of negotiations following the decision to impose tariffs on Mexican goods. The agreement is part of a broader effort to resolve trade disputes and promote economic cooperation. Mexico's Economy Minister has expressed optimism about the deal, stating that it will help increase the number of compliant companies exporting to the U.S. in the coming weeks.

Under the terms of the agreement, all goods that comply with the United States-Mexico-Canada Agreement (USMCA) will be exempt from the tariff hike imposed on Canada and Mexico. This exemption is expected to benefit various industries, including the auto sector, which is a significant contributor to the trade between the two countries. The pause in tariffs is estimated to cover 49% to 90% of total U.S. imports from Mexico, providing a substantial relief to Mexican exporters.

Mexico will also negotiate with the U.S. on newly imposed tariffs on steel and aluminum. This ongoing dialogue is part of the broader effort to resolve trade disputes and promote economic cooperation between the two nations. The tariff relief deal is expected to have a positive impact on the Mexican economy, as it will reduce the cost of exports and increase the competitiveness of Mexican goods in the U.S. market.