Mexico’s Congress approves tariff hikes on imports from China and others
MEXICO CITY (AP) — Mexico’s Congress on Wednesday approved most of the government’s proposed tariff increases on more than 1,400 products imported from China and other countries that do not have a free trade agreement with Mexico.
The Senate passed the measure Wednesday evening, following the lower chamber, which approved the increases before dawn. President Claudia Sheinbaum’s ruling Morena party, which says tariffs are high Domestic production needs to be encouragedcontrols both rooms. The Senate passed the law with 76 votes in favour, 5 against and 35 abstentions.
Analysts say the real motivation is: Negotiations with Washington continueMexico’s most important trading partner. Sheinbaum is trying to avoid the remainder of the tariffs imposed on Mexican imports by the Trump administration, which accuses China of using Mexico as a backdoor into the U.S. market.
Tariff increases of up to 50 percent will affect textiles, footwear, household appliances, cars and auto parts, among other things, from January.
China will be most affected, with Mexico importing $130 billion worth of products from the country in 2024, second only to what Mexico buys from the United States. The Chinese government criticized the proposed tariff increases when they were announced in September.
“The real reason has to do with the United States, the upcoming review of the USMCA (free trade agreement), negotiations to obtain reductions and exemptions. Tariffs facing Mexico Oscar Ocampo, director of economic development at the Mexican Competitiveness Institute, said they now have access to the US market. Mexico still faces US tariffs on the auto sector, steel and aluminum.
But Ocampo said Mexico had bowed to unpredictable US President Donald Trump and changed its trade policy “in the wrong direction.” The government said it was creating problems for a number of sectors, including auto parts, plastics, chemicals and textiles, because tariffs would create disruptions in supply chains and could push up inflation at a time when the economy is slowing.
