Mexico's Congress approves tariff hikes on imports from China and others

"Mexico's Congress approved Wednesday most of the tariff increases proposed by the government on more than 1,400 products imported from China and other countries that do not have free trade agreements with Mexico. The Senate passed the measure Wednesday evening, following the lower chamber, which had approved the increases before dawn. The governing Morena party of President Claudia Sheinbaum, who said the tariffs were necessary to spur domestic production, controls both chambers."

"Analysts say the real motivation is ongoing negotiations with Washington, Mexico's most important trading partner. Sheinbaum has been trying to find relief from remaining tariffs imposed on Mexican imports by the Trump administration, which has accused China of using Mexico as a backdoor into the U.S. market. Tariff increases of as much as 50% will affect textiles, shoes, appliances, cars and auto parts among other things beginning in January."

Mexico's Congress approved most tariff increases on more than 1,400 imported products from China and other countries without free trade agreements, with the Senate passing the measure 76-5-35. The governing Morena party controls both chambers and President Claudia Sheinbaum said the tariffs will spur domestic production. Analysts link the move to negotiations with the United States and the upcoming USMCA review as Mexico seeks relief from U.S. tariffs imposed on autos, steel and aluminum. Tariffs up to 50% will hit textiles, shoes, appliances, cars and parts beginning in January. China will be most affected after Mexico imported $130 billion from China in 2024.

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