China–Mexico Daily Brief | Oct 27: Mexico's Senate exempts bonded-warehouse automakers from deduction limits

Mexico's Senate exempts bonded-warehouse automakers and fuel retailers from new ISR deduction limits; bill returns to lower house

According to El Economista (27 October), Mexico's Senate approved a change that day to the income tax (ISR) reform: from fiscal year 2027, taxpayers with income above 50 million pesos will face limits on authorized deductions and prior-year tax losses under article 78-E, but automakers holding a bonded-warehouse (depósito fiscal) authorization for vehicle assembly and manufacturing are exempted; their income from sales inside Mexico remains subject to the limit. The change also exempts sellers, distributors and traders of gasoline and diesel; the sponsor cited more than 3,000 service stations. The reform passed in general by 74 votes to 34. Because the text was amended, the bill goes back to the Chamber of Deputies, which must decide whether to accept the exceptions before it can be sent to the Executive. At the time of writing, the Senate had not posted a communiqué on that vote.

Check your code with the tariff lookup tool

Mexico's trucking stoppage ends: Interior Ministry and CANACAR agree to lift blockades and open working groups

According to El Economista (27 October), the Interior Ministry (Segob) said that day it had agreed with the CANACAR freight chamber and other trucking groups that they will lift the highway blockades for good and suspend protests, and that the relevant agencies will hold working sessions on highway security, infrastructure, tax matters, social security and drivers' working conditions, coordinated by Segob's undersecretariat and government unit. According to The Logistics World, CANACAR president Augusto Ramos Melo said four high-level working groups will be set up, the first on tax incentives with the Finance Ministry (SHCP); the outlet notes that Segob's statement sets no targets, budget or deadlines. We reported on 26 October that the stoppage reached 19 states; what is new is that it has ended.

Mexico's September exports rise 37.9%; electrical and electronic equipment up 94.7%, with a US$606 million trade deficit

According to timely figures published by INEGI on 27 October, Mexico exported US$77,797 million of goods in September, up 37.9% from a year earlier, and imported US$78,403 million, up 33.1%, leaving a deficit of US$606 million (August had a US$605 million surplus). Manufacturing exports reached US$72,773 million (+39.0%), led by electrical and electronic equipment (+94.7%), mining and metallurgy products (+15.5%), special machinery and equipment for various industries (+14.7%), plastics and rubber (+12.9%) and automotive products (+5.7%: +8.5% to the US and –7.4% to other markets). Non-oil exports to the US rose 43.5% and to the rest of the world 16.4%. On imports, intermediate goods totalled US$63,103 million (+38.8%), consumer goods US$9,823 million (+11.4%) and capital goods US$5,477 million (+18.7%). January–September exports totalled US$627,194 million (+30.4%), with a surplus of US$9,254 million. The bulletin does not break imports down by country of origin.

Ebrard says US tariffs are unlikely to fall quickly after the 3 November US elections

According to El Financiero, Economy Minister Marcelo Ebrard said on 27 October that US tariffs already bring in significant revenue, so a quick change should not be expected even if the 3 November elections shift the US political balance. Asked about a cut to steel, aluminium and auto tariffs, he said negotiations could run past election day; talks are advancing, with disagreement on some points and agreement on others, and it is hard to set a date for results. In a separate report citing US Commerce Department data, El Financiero said the US collected US$14,439 million in tariffs on Mexican goods in January–August, 8.3% of the US$173,500 million it collected in total, and US$8,050 million on Canadian goods.

Check your code with the tariff lookup tool

Peso weakens: Banxico's FIX rate is 18.6525 per dollar on 27 October

Banco de México (Banxico) published a FIX rate of 18.6525 pesos per dollar on 27 October; the rate for settling foreign-currency obligations published that day in the DOF (set on 26 October) was 18.5798. According to El Financiero, citing Banxico data, the peso fell 0.65% on the 27th to 18.67 per dollar, 12 centavos weaker than Monday's close, the biggest loss among the currencies it compared, as markets awaited the US Federal Reserve's 28 October decision. A Monex analysis published by El Economista on the 27th says the rate recently touched an intraday high of 18.86, its highest in 52 weeks, and that the dollar is up about 3.8% against the peso so far this year.