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Heavy impact of tariffs applied to Chinese products on the Mexican packaging industry.



In a recent economic measure, the government decided to increase tariffs on 544 products

from China, including paper and cardboard.This decision aims to protect employment and

domestic production while strengthening the domestic Mexican market against unfair trade

practices.


Although the aim of this policy is to protect jobs, bolster domestic production, and address unfair trade practices, at Litoplas we are deeply concerned about the direct impact it's having on our operations.


Multi-layered cardboard is crucial for our product manufacturing. With this tariff increase,

costs for key materials automatically rise (25% in this case), prompting a need to reassess

negotiation strategies. This situation forces us to consider options like possibly reconfiguring the

supply chain towards alternative suppliers. We are negotiating with suppliers from countries with whom we have trade agreements. However, we have noticed that these suppliers are adjusting their prices due to the increased costs caused by the new tariffs on Chinese products.


Today, more than ever, we must be innovative and strategic in our decisions to ensure that

Litoplas can continue offering high-quality products without sacrificing our financial stability or

reputation. This is not only a test of our resilience but also an opportunity to demonstrate our

adaptability in uncertain times.


Sources:

Litoplas Editorial Team.


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