Mexico’s Senate approved on Wednesday tariff hikes of up to 50 percent on imports from China and several Asian countries starting next year, in efforts to bolster local industries despite opposition from business groups and affected governments.The proposal, passed earlier by the lower house, will raise or impose new duties of up to 50 percent from 2026 on certain goods such as autos, auto parts, textiles, clothing, plastics and steel from countries without trade deals with Mexico, including China, Indonesia, India, South Korea and Thailand. The majority of products will face tariffs of up to 35 percent.
The Senate approved the bill with 76 votes in favor, five against, and 35 abstentions, despite opposition from China and domestic business groups.
The approved bill is less stringent than an earlier version that stalled in the lower house this autumn, with about 1,400 tariff lines, mostly textiles, apparel, steel, auto parts, plastics and footwear. The legislation now reduces duties on roughly two-thirds of them compared with the original proposal.
Analysts and the private sector argue the move is aimed at appeasing the United States ahead of the next review of the US-Mexico-Canada trade agreement (USMCA), and say it is also intended to generate US$3.76 billion in additional revenue next year as Mexico seeks to reduce its fiscal deficit.
“On the one hand, it protects certain local productive sectors that are at a disadvantage with respect to Chinese products.It also protects jobs,” said Mario Vazquez, a senator for the opposition PAN party.
Keep reading