15 handpicked stocks

Mexico Tariffs: What's Next for Local Industry?

Mexico is raising tariffs on Chinese imports to protect its local industries from foreign competition. This shift creates an advantage for Mexican domestic manufacturers, who are now better positioned to capture a larger share of their home market.

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Author avatar

Han Tan | Market Analyst

Published on September 12

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

BWMX

Betterware de Mexico SAPI de C

BWMX

Current price

$13.40

Mexican company positioned to benefit from reduced foreign competition in domestic markets.

FMX

Fomento Económico Mexicano, S.A.B de C.V

FMX

Current price

$92.31

Leading Mexican beverage company with strong domestic market presence.

SIM

Grupo Simec S.A.B. de C.V.

SIM

Current price

$28.06

Mexican industrial company well-positioned for domestic market expansion.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

In 12 months it might be worth:

$1,000.00

+17.77%

About This Group of Stocks

1

Our Expert Thinking

Mexico's decision to impose tariffs of up to 50% on Chinese imports represents a major shift towards protecting domestic industries. This protectionist move creates a competitive advantage for local manufacturers by making foreign alternatives more expensive, potentially boosting market share and pricing power for Mexican companies across key sectors like automotive, steel, and manufacturing.

2

What You Need to Know

This group focuses on Mexican businesses positioned to benefit from reduced foreign competition. The tariffs specifically target vehicles, steel, furniture, and toys from China, creating direct opportunities for domestic producers in these sectors. This represents a tactical shift from Mexico's traditionally open trade stance towards a more nationalist industrial strategy.

3

Why These Stocks

These companies were handpicked by professional analysts based on their exposure to sectors most likely to benefit from Mexico's new tariff policy. The selection includes manufacturers, infrastructure companies, and funds across industries where reduced Chinese competition could translate into increased domestic demand and improved profitability for Mexican businesses.

Group Performance Snapshot

17.77%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 17.77% over the next year.

9 of 13

Stocks Rated Buy by Analysts

9 of 13 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🛡️

Protected Market Advantage

With tariffs of up to 50% on Chinese imports, Mexican companies now have a significant cost advantage over foreign competitors. This government protection could translate into higher market share and improved pricing power for domestic producers.

🏭

Industrial Renaissance Potential

Mexico's shift towards protectionism marks a pivotal moment for local manufacturing. Companies in automotive, steel, and consumer goods sectors are positioned to capture demand previously met by cheaper Chinese imports.

📈

Policy-Driven Growth Catalyst

This isn't just market speculation - it's government policy creating real competitive advantages. Mexican businesses across multiple sectors now have regulatory tailwinds that could drive sustained growth and profitability improvements.

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