As Mexico slaps steep tariffs on Asian imports, South Korea’s lack of a free trade deal with the Latin American country puts it at a disadvantage to Japanese rival carmakers.
Higher tariffs are expected to apply to a list of more than 1,400 categories of products coming from countries with which Mexico has no trade agreement. China, South Korea and India are among those exporters that would be hit if Congress approves the levies.
For South Korea, the bigger risk lies not in China’s retreat, but in Japan’s advance. Tokyo has a free trade pact with Mexico, while negotiations initiated in 2007 between South Korea and Mexico have made little progress.
Mexican tariffs give Japan’s carmakers an edge over Korean rivals
