Mexico has announced plans to increase tariffs on automobiles from China and other Asian countries to 50%, as part of a broader overhaul of import levies. The move, aimed at protecting jobs and reportedly intended to placate the United States, will impact $52 billion of imports across multiple sectors, including textiles, steel, and automotive.
According to the Economy Ministry, the tariffs will affect countries without trade deals with Mexico, such as China, South Korea, India, Indonesia, Russia, Thailand, and Turkey. The plan, which still requires Congressional approval, is expected to protect 325,000 industrial and manufacturing jobs at risk. The tariffs will impact 8.6% of all imports, with specific levies ranging from 10% to 50% on textiles, and a 35% tariff on steel, toys, and motorcycles.
Economy Minister Marcelo Ebrard stated that the measures are necessary to prevent Chinese cars from entering the local market at prices below reference levels, making it difficult for domestic industries to compete. China has responded by expressing opposition to being coerced and restricted under various pretexts, with its foreign ministry spokesperson, Lin Jian, stating that the country hopes Mexico will work towards global economic recovery and trade development instead.
The move comes as the United States pushes countries in Latin America to limit their economic ties with China, with which it competes for influence in the region. Mexico’s trade deficit with China has doubled in the last decade, reaching $120 billion last year. The plan’s approval by Congress, where the government holds a significant majority, is expected to be a key step in implementing the new tariffs.
The imposed tariffs are within the limits set by the World Trade Organization, and the Mexican government believes they are necessary to safeguard domestic industries and jobs. As the plan moves forward, it is likely to have significant implications for trade relations between Mexico, China, and the United States, and may set a precedent for other countries in the region. With the plan’s implementation, Mexico aims to strike a balance between protecting its domestic economy and maintaining its position in the global trade landscape.
