The Mexican Senate has approved legislation raising import tariffs up to 50% on countries without free trade agreements with Mexico, affecting nations such as China, India, South Korea, and Thailand. Foxconn's rotating CEO, Kathy Yang, indicated the overall impact on the company is limited.
Yang spoke with the media after a public event on December 12, explaining that Mexico's new tariff measures mainly target industries outside the information and communications technology (ICT) sector. Foxconn's manufacturing operations in Mexico largely concentrate on ICT products, with a smaller portion involving automotive components. The company has implemented various bonded mechanisms locally, which help mitigate the impact of the tariff increases.
Yang emphasized the importance of calmly addressing each country's policy decisions, noting that international companies like Foxconn regularly navigate shifting political and economic environments. He expressed confidence in Foxconn's resilience and adaptability, suggesting that the firm is prepared to manage the challenges brought about by evolving trade policies without significant concern.
The tariff adjustments come amid ongoing global tariff disputes, with Mexico's move reflecting a broader trend of protectionist measures affecting international trade. Asian economies targeted by the tariffs are key players in global supply chains, highlighting the potential for increased complexities in trade relations going forward.
Article translated by Jingyue Hsiao and edited by Jack Wu
