Aerospace imports may not be affected by U.S. tariffs

MEXICO - Given the latent threat of a 25% tariff on Mexican exports by President Donald Trump's administration, the Mexican aerospace sector may not be affected by these measures, said Beatriz Ramos García, founding partner of Van Beuren & Hamilton's Customs Area.

During a webinar organized by the Mexican Federation of the Aerospace Industry (FEMIA) entitled “The impact of customs in the global framework of foreign trade”, the specialist explained that the aerospace sector would be exempt, because the imports of the sector are to make only parts to be included in an aircraft.

In other words, she said, Mexico does not make airplanes, but rather components that are included in an aircraft and these are incorporated in another country, where the complete airplanes are manufactured.

However, the specialist clarified that, in the list of products subject to tariffs in case they are applied.

"I cannot see the part that says, if they are airplane parts they will not pay the tariff, but I can see that it is very directed to some sectors such as the automotive sector,” said Ramos García.

For this reason, she invited people in the sector to consult whether they would be obliged to pay this tax and, in the specific case of the sector, an exception could be found for two reasons.

The first, she explained, is due to the type of goods and their origin, since they are not usually of Mexican origin, and the second, because in many cases they are going to be part of a process, they are not goods that are going to stay.

She specified that these imports do not affect the aeronautical industry in the United States and, as they do not represent a real impact, President Trump seeks to influence trade and the final consumer, pressuring them to acquire products that are not of Mexican or Canadian origin as part of the sanction.

She pointed out that by being able to clarify that these are imports of part of a process or to manufacture part of an airplane that is not even going to be assembled in the United States, the exception could be achieved.

“It is also true that if President Trump thinks it is enough that there are 10,000 soldiers deployed on the border, this will never go into effect,” she said.

For this reason, Ramos García commented that Mexico must have better control in its customs, just as the United States and Europe have, and with this reduce human control, which is the corruptible one.