Mexico to raise tariffs on cars from China to 50%, as it faces pressure from Trump
The move comes under a broad overhaul that will hit sectors from textiles to steel and also affect countries like India and South Korea
Mexico said on Wednesday it will raise tariffs on cars from China and other Asian countries to 50 per cent, in a broad overhaul of import levies the government said would protect jobs and analysts said was aimed at placating the United States.
The Economy Ministry said the moves, which will increase tariffs to varying degrees on goods across multiple sectors including textiles, steel and vehicles, would affect US$52 billion of imports.
“They already have tariffs,” Economy Minister Marcelo Ebrard told reporters when asked about the import levies on Chinese cars, which are currently 20 per cent. “What we will do is raise them to the maximum level allowed.
“Without a certain level of protection, you almost can’t compete,” he added.
Ebrard said the measures, which come just within limits imposed by the World Trade Organization, were intended to protect jobs in Mexico as Chinese cars were entering the local market “below what we call reference prices”.
The plan still needs to be approved by Congress, where the government holds a significant majority.
01:15
Canada, Brazil hardest hit as Trump unleashes new global tariff blitz