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Mexico's Sugar Wall Rises: A 156% Tariff That Rewrites Who Supplies What
(MENAFN- The Rio Times) Mexico has thrown up a steep new barrier to foreign sugar, imposing a 156% ad-valorem tariff on imported sugar and a 210.44% rate on refined liquid sugars.
The shift-from fixed per-ton fees to percentage-based duties that include freight and insurance-aims to make most imports uneconomic and steady local prices after weak harvests and unusual buying patterns rattled the market.
The stakes are high at home. Sugar is grown across roughly half of Mexico 's states, tying mills and cane fields to millions of livelihoods.
Producers expect output to recover to about 5.2 million tons in the 2025/26 crush, up from roughly 4.7 million last season. Local demand sits a little above 4 million tons, with the remainder typically exported-largely to the United States under a managed quota.
In recent seasons, however, Mexico imported a bit more than 1 million tons in total as weather hurt yields. The government's message now is price stability and self-reliance.
Mexico's Sugar Rules Shift Sourcing and Costs for Global Food Firms
For global suppliers, the practical impact lands hardest on the origins that filled Mexico's recent gaps: Brazil and Guatemala first, with some cargoes from India and occasional U.S. shipments.
No country is named in the decree, but the economics are clear. For beverage makers, confectioners, and packaged-food firms operating in Mexico, the new rules mean higher input costs if they relied on imported sugar.
Expect a pivot toward domestic contracts and, where recipes allow, greater use of alternatives like high-fructose corn syrup (which is not covered by the new tariff structure).
For expats and foreign investors, the signal is twofold. First, Mexico is prioritizing agricultural stability and predictable prices over opportunistic import bargains.
Second, companies in drinks, candy, and processed foods will rework sourcing, recipes, and pricing to manage costs, with knock-on effects for supply chains across North and Central America.
The shift-from fixed per-ton fees to percentage-based duties that include freight and insurance-aims to make most imports uneconomic and steady local prices after weak harvests and unusual buying patterns rattled the market.
The stakes are high at home. Sugar is grown across roughly half of Mexico 's states, tying mills and cane fields to millions of livelihoods.
Producers expect output to recover to about 5.2 million tons in the 2025/26 crush, up from roughly 4.7 million last season. Local demand sits a little above 4 million tons, with the remainder typically exported-largely to the United States under a managed quota.
In recent seasons, however, Mexico imported a bit more than 1 million tons in total as weather hurt yields. The government's message now is price stability and self-reliance.
Mexico's Sugar Rules Shift Sourcing and Costs for Global Food Firms
For global suppliers, the practical impact lands hardest on the origins that filled Mexico's recent gaps: Brazil and Guatemala first, with some cargoes from India and occasional U.S. shipments.
No country is named in the decree, but the economics are clear. For beverage makers, confectioners, and packaged-food firms operating in Mexico, the new rules mean higher input costs if they relied on imported sugar.
Expect a pivot toward domestic contracts and, where recipes allow, greater use of alternatives like high-fructose corn syrup (which is not covered by the new tariff structure).
For expats and foreign investors, the signal is twofold. First, Mexico is prioritizing agricultural stability and predictable prices over opportunistic import bargains.
Second, companies in drinks, candy, and processed foods will rework sourcing, recipes, and pricing to manage costs, with knock-on effects for supply chains across North and Central America.
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