Mexico Plans 50% Tariff on Chinese and Asian Cars Amid US Pressure
Mexico plans to raise tariffs on cars imported from Asia, particularly those made in China, increasing the duty from the current 20% to as much as 50%. This move, part of a broader overhaul of import tariffs affecting goods worth around $52 billion, is intended to protect domestic jobs and industries in Mexico. However, China has strongly warned Mexico to reconsider this decision, threatening to take retaliatory measures to defend its economic interests. The Chinese Ministry of Commerce emphasized the importance of maintaining smooth trade relations and warned that these tariffs could disrupt bilateral economic cooperation. This development comes amid ongoing US-China trade tensions, with the US reportedly pressuring Mexico to limit Chinese imports as part of its broader trade and geopolitical strategy in the region.
Mexico has announced plans to raise tariffs on cars imported from Asia—especially those made in China—from 20% to 50%. This significant increase, part of a wider reform aimed at protecting domestic industries and jobs across 19 strategic sectors, targets imports from countries with which Mexico does not have free trade agreements. The government argues that the current lower tariffs make it difficult for local manufacturers to compete, as Asian cars often enter the market below reference prices. This move aligns with protectionist efforts to bolster Mexico’s trade balance and encourage domestic production.
If the legislation passes, these tariffs will take effect 30 days after Congressional approval and could impact automotive imports from China, South Korea, India, and several other Asian countries. The U.S. and Canada remain exempt under the US-Mexico-Canada Agreement (USMCA). The tariff hike raises concerns over potential price increases for consumers, disruption in vehicle supply chains, and broader geopolitical trade conflicts, underscoring enduring tensions in global trade relations.
Mexico has announced plans to raise tariffs on cars imported from Asia—especially those made in China—from 20% to 50%. This significant increase, part of a wider reform aimed at protecting domestic industries and jobs across 19 strategic sectors, targets imports from countries with which Mexico does not have free trade agreements. The government argues that the current lower tariffs make it difficult for local manufacturers to compete, as Asian cars often enter the market below reference prices. This move aligns with protectionist efforts to bolster Mexico’s trade balance and encourage domestic production.
If the legislation passes, these tariffs will take effect 30 days after Congressional approval and could impact automotive imports from China, South Korea, India, and several other Asian countries. The U.S. and Canada remain exempt under the US-Mexico-Canada Agreement (USMCA). The tariff hike raises concerns over potential price increases for consumers, disruption in vehicle supply chains, and broader geopolitical trade conflicts, underscoring enduring tensions in global trade relations.