MEXICO CITY: Mexico has proposed increasing tariffs on Chinese car imports to 50% from the current 15-20% range amid pressure from the United States.
The Mexican government submitted the bill to Congress to prevent China from using Mexico as a back door for goods entering the US market.
US President Donald Trump has repeatedly urged trading partners to increase duties on Chinese products to address trade imbalances.
The White House alleges Chinese producers are exploiting the US-Mexico-Canada free-trade agreement to send goods tariff-free across the Mexican border.
Beijing criticised the proposed tariffs through foreign ministry spokesman Lin Jian, who stated China firmly opposes any coercion without directly naming the United States.
Mexican President Claudia Sheinbaum has expressed concerns about Chinese imports negatively impacting domestic manufacturing sectors.
The tariff increase aims to protect 19 strategic industrial sectors and improve Mexico’s trade balance by replacing Asian imports with domestic production.
Mexico became the United States’ largest trading partner in 2023, with over 80% of Mexican exports going to its northern neighbour.
The country exports nearly three million automobiles annually to the United States, including vehicles assembled by US auto companies in Mexican factories.
Light vehicle imports from China would face the 50% tariff while auto parts would see increases between 10% and 50% if the legislation passes.
The Mexican economy ministry estimates the measure would protect 325,000 jobs in strategic industries and create thousands of additional employment opportunities.
Official data shows two out of every ten light vehicles sold in Mexico are Chinese, with sector sales growing by 10% last year.
Major auto manufacturers including General Motors, Ford, Volkswagen, Nissan, Honda and Toyota all maintain production facilities in Mexico.
The proposed tariff increases would also affect imports from South Korea, India, Indonesia, Russia, Thailand and Turkey due to absent trade agreements.
President Trump has maintained a 25% tariff on car imports while exempting vehicles with US content assembled in Mexico.
With President Sheinbaum’s ruling party holding a congressional majority, the tariff bill appears likely to pass into law. – AFP
