Mexico Approves Up to 50% Tariffs on Chinese, Asian Imports

Article content(Bloomberg) — Mexican lawmakers gave final approval for new tariffs on Asian imports, broadly aligning with US efforts to tighten trade barriers against China, as President Claudia Sheinbaum seeks to protect local industry.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentMexico’s Senate on Wednesday voted in favor of the bill that imposes tariffs of between 5% and 50% on more than 1,400 products from Asian nations that don’t have a trade deal with Mexico. The bill passed with 76 votes in favor, five against and 35 abstentions.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe new levies will take effect starting next year and hit a wide range of products from clothing to metals and auto parts, with the massive output of Chinese factories emerging as the legislation’s focus.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentPassage of the bill took place against the backdrop of Sheinbaum’s high-stakes trade talks with President Donald Trump and pressure to match his priorities, fueling hopes Mexico’s levies on Chinese goods could ease punishing US tariffs on goods like Mexican steel and aluminum.Article contentWhile Sheinbaum has publicly denied any connection to Trump’s own tariff onslaught against the Asian giant, the new import levies resemble the US leader’s approach.Article contentFor decades, Mexico has embraced free trade more than nearly any other country in the Americas, inking dozens of trade deals with nations all across the globe. But Sheinbaum’s leftist Morena party is now moving in a different direction.Article contentMexico’s finance ministry estimates the new tariffs will raise nearly 52 billion pesos ($2.8 billion) in extra revenue next year.Article contentSheinbaum sent the proposal to Congress in early September, but lobbying from Asian governments and domestic opponents — from business lobbies and critical legislators — delayed its passage.Article contentArticle contentManufacturers reliant on inputs made in China, India and South Korea, among others, warned of rising costs that could fan inflation. Some lawmakers, including from the ruling party, sought to avoid a dispute with a rising region many consider crucial to the diversification of Mexican export markets.Article contentSheinbaum’s embrace of the tariffs track with US concerns regarding so-called transshipment of Chinese exports through other countries, and follow action by Canada last year to also emulate US levies on electric cars, steel and aluminum from China.Article contentChinese officials have sharply criticized the latest Mexican tariffs as unwarranted and harmful.Article contentAccording to the tariff legislation, Chinese cars will face among the steepest tariffs at 50%. The country’s massive auto sector currently holds 20% of the Mexican market, up dramatically from minimal vehicle imports just six years ago.Article contentMexican officials and local auto associations backed the import levies in a bid to protect national vehicle production, a major driver of Mexico’s manufacturing sector.Article contentAlong with the new tariffs, lawmakers approved a measure that will empower Mexico’s Economy Ministry, responsible for trade policy, to adjust the import levies as it sees fit.Article contentThe measure states that the ministry “may implement specific legal mechanisms and instruments for the importation of goods from countries with which the Mexican state does not have a free trade agreement in force.” The provision cites the flexible mechanism’s goal of ensuring supplies of key imports under competitive conditions.Article contentThe policy could provide Mexican officials with useful tools ahead of next year’s review of the North American USMCA trade pact with US and Canadian negotiators.Article content—With assistance from Alex Vasquez and Eric Martin.Article contentTrending David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News Bank of Canada tempers expectations for any moves on rates in 2026, economists say Economy Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth This Canadian mine is as big as a city. 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