On April 22, local time, Mexican President Lopez Obrador signed a decree imposing temporary import duties of 5% to 50% on 544 goods such as steel, aluminum, textiles, clothing, footwear, wood, plastics and their products.

The decree came into effect on April 23 and is valid for two years. According to the decree, textiles, clothing, footwear and other products will be subject to a temporary import duty of 35%; Round steel with a diameter of less than 14 mm will be subject to a temporary import duty of 50%. Goods imported from regions and countries that have signed trade agreements with Mexico will enjoy preferential tariff treatment if they meet the relevant provisions of the agreements.

Gabriela Sillier, director of economic analysis at BASE Financial Group in Mexico, believes that the tariff measures could lead to increased inflationary pressures in Mexico and that “protectionism doesn’t work anywhere.”