Mexican Congress Approves Higher Tariffs on Non-FTA Countries, Including China
Mexico’s Senate this week voted 76-5, with 35 abstentions, to approve new higher tariffs on a range of products imported from China and other countries that don't have free trade agreements with Mexico, according to an unofficial translation of the Senate's news release.
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The measures are set to increase most tariffs up to 35%, but also as high as 50%, through 2026 on automobiles, auto parts, textiles, clothing, plastics and steel from China and other Asian countries, Reuters reported. Those other nations include India, South Korea, Thailand and Indonesia.
Mexico said the new duties, also passed earlier in the week by its lower house, are aimed at avoiding “economic distortions that could affect the relocation of productive sectors considered strategic for Mexico, as well as the attraction of new companies and high value-added industries.” The new tariffs were passed ahead of the upcoming review of USMCA and amid what some analysts say is mounting U.S. pressure against Mexico to hike duties against Beijing (see 2512080046 and 2509160063).
A Chinese Ministry of Commerce spokesperson criticized the new duties, saying they will “substantially harm the interests of relevant trading partners, including China.” The spokesperson noted that Beijing in September began a trade and investment barrier investigation against Mexico.
“China has consistently opposed all forms of unilateral tariff increases and hopes that Mexico will correct its erroneous practices of unilateralism and protectionism as soon as possible,” the spokesperson said, according to an unofficial translation.