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Mexico Increases Tariffs by up to 50% on Chinese Goods

Mexico's lower house passes bill effectively increasing import duties on Chinese goods, Sheinbaum gets behind move to protect local industries

Mexico Increases Tariffs by up to 50% on Chinese Goods
Trucks stand by near loading containers at Yangshan Deepwater Port on April 27, 2022 in Shanghai, China. Credit: Tian Yuhao/China News Service/Getty Images

MEXICO CITY - Mexico votes to raise tariffs on a range of Chinese imports by up to 50%, stirring outcry from the government in Beijing on Thursday.

The move, supported by Mexican President Claudia Sheinbaum, is intended to strengthen the national economy and support local industries, like Mexican textiles and the automobile sector.

The tariff increase, passed by the lower house of the National Congress, is expected to be ratified by President Sheinbaum and will go into effect on January 1, 2026.

Members of the lower house of the National Congress on Dec. 1, 2018. Photo Credit: Marco Ugarte/The Associated Press

The bill will raise or impose import duties of up to 50% on a collection of categories, including plastics, autos, auto parts, textiles, clothing, and steel from Chinese distributors and from other nations with whom Mexico does have have official trade deals.

The bill passed with 76 votes in favor, with 5 against and 35 abstentions.

Critics accuse the president of kneeling to U.S. pressure by the Trump administration, which has been an unwavering proponent of placing stronger tariffs on Chinese goods, accusing Beijing of bypassing U.S. tariffs by manufacturing goods in Mexico and distributing them north across the U.S. southern border.

Sheinbaum denies any connection between the new tariffs and ongoing negotiations with the White House.

China, on the other hand, carries a substantial trade surplus with its Mexican counterparts, exporting approximately $71 billion more worth of goods than it imports, according to Chinese data.

With the new tariffs, Chinese automobile products will face the deepest hit from Mexican duties, according to analysts, stating that it "hopes Mexico will correct its erroneous practices of unilateralism and protectionism as soon as possible."

Sociedad Media

Sociedad Media

Staff at Sociedad Media

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