China’s exports to Mexico are getting heavier tariffs – is it a sign of more to come?
- Mexico has established new or higher tariffs on a long list of imports, directly affecting China and raising questions over what else could be in store
- Pressures mounting on Latin American country to limit its trade relationship with China, especially in role as ‘springboard’ to US market
Tariff hikes, levying 5 to 50 per cent in additional import costs, have kicked in for 544 products entering Mexico. The higher rates only apply to countries without free trade pacts with the Latin American country, which includes China – its second-largest trading partner and a growing source of shipments over the last two years.
“[The tariffs are] to provide certainty and fair market conditions to domestic industrial sectors that face vulnerability derived from practices that altered and affected international trade,” read a Mexican government statement from April 20 regarding the change.
14:45
An unwinnable conflict? The US-China trade war, 5 years on
Affected products include steel, aluminium, textiles, clothing, musical instruments and furniture.
The tariffs present a new hurdle for Chinese businesses as they search for new export destinations, with traditional supply chains altered after escalations in economic tensions with the US.