Mexico Imposes New Tariffs on Asian Imports to Ease US Trade Pressures

President Claudia Sheinbaum said that the management of tariffs announced the budget proposal the day before, and that the US tariffs aimed to direct the effects of Mexico, especially 23 percent of Mexican production on some products in the automotive sector.

Products that will face import taxes include light vehicles, automobile parts, textiles, shoes, plastic, electronics, toys and other products.

The budget is expected to easily pass through the Mexican Congress, where the management party holds majority in both rooms.

Economic Secretary Marcelo Ebrarard said on Wednesday that tariffs will be applied to 8.6 percent of what Mexico bought abroad and will be applied to countries without free trade agreements with Mexico.

There is already an average of 16 percent tariff of the listed products, but Ebrard said that international agreements will be increased to the maximum level allowed.

Mexico will be the most impressed because it imports 130 billion dollars of products from the country in 2024, only the second thing Mexico has bought from the United States. Other best countries will be South Korea, Thailand, India, Philippines and Indonesia.

Mexico is under the pressure of limiting Chinese imports from the Trump administration, some of which claimed that some of Mexico use it as the back door to the US market.

“What Mexico is currently looking for is discounts or exemptions in the tariffs they pay (the US),” Oscar Ocampo, a researcher of the Mexican Institute of Competition Institute. He said.

Mexico continues to exit these tariffs � 25 percent, especially in the automotive sector and 50 percent in steel and aluminum, even when preparing with Canadian and United States for the revision of free trade agreements.

Ocampo said Mexico’s new tariffs about Asian trade partners can strengthen his hand in talks with Washington. “Is it enough? It is impossible to know,” he said.

Sheinbaum, who met with US Secretary of State Marco Rubio last week at Mexico City, says tariffs are not the result of the US pressure, but rather to encourage local production.

Management argues that targeted products such as Chinese cars are sold under market prices.

Last month, Chinese government spokesman Guo Jiakun criticized the rumors of Mexican tariffs.

“China is firmly opposed to the restrictions imposed under China under various excuses and from others who damage the legitimate rights and interests of China.” He said.

Unlike the US tariffs, OCAMPO said that Mexico is following international trade guidelines.