Mexico Temporarily Halts Footwear Imports to Shield Domestic Industry

Mexico defends domestic product. The Government of Mexico has decided to temporarily suspend imports of finished footwear to protect domestic production of this product, as reflected in the Official Gazette of the Federation of yesterday, Thursday.

This document alleges that the increasing imports of finished footwear have damaged the competitiveness of the national industry, “for which reason it is necessary to take actions to avoid practices that affect employment and the competitiveness of the national industry”, a measure that can be taken by the Mexican Executive “when it deems it urgent” to regulate foreign trade and the stability of national production for the benefit of the country.

Between 2019 and 2024, the average annual GDP growth rate of the footwear industry experienced a 3.1% decrease due to footwear imports, while production contracted by 0.1% and employment by 2.8%, according to data published by the National Institute of Statistics and Geography (Inegi).

Mexico plans to increase tariff rate for Chinese textile imports

Mexico has suffered this reduction repeatedly in the last year: the economic situation of the domestic industry suffered a 12.8% year-on-year GDP cut compared to 2023, the value of its production decreased by 12.5% and 10.958 formal jobs were lost to record lows.

Meanwhile, imports of finished footwear under the Manufacturing, Maquiladora and Export Services Industry Program (Immex), which allows temporary duty-free imports of goods needed to be used in an industrial process, grew by 159% and 60.3% in volume and value, respectively, with respect to the same period in 2023.

This move comes after the Mexican government announced yesterday its forecast to increase tariffs for Chinese imports in cars, textiles and plastics as part of its 2026 budget proposal, and will present a draft next September 8, as encouraged by President Donald Trump.