Mexico Set To Raise Tariffs On Chinese Cars To 50% After US Pressure
Mexico’s government has unveiled plans to increase tariffs on automobiles imported from China and other Asian countries from about 20% to 50%. The move is part of a broader overhaul of import duties aimed at protecting domestic industries and jobs.
Scope Of The Import Overhaul
The proposed changes would affect around US$52 billion in imports including cars, auto parts, steel, textiles, toys, motorcycles, and other manufactured goods. Most of the high new tariffs apply to countries that do not have trade agreements with Mexico.
Purpose And Protection Goals
Mexican Economy Minister Marcelo Ebrard said the hike is intended to protect jobs, especially in domestic automotive and manufacturing sectors. He pointed out that some Chinese imports are being sold “below reference price,” which makes competition particularly hard for local producers.
Legal And Trade Constraints
Mexico says that the proposed tariff increases are within the limits allowed by World Trade Organization (WTO) rules. It also notes that the measures still require approval from Congress.
Potential Effects
The government estimates the changes will impact about 8.6% of all imports, and aims to protect approximately 325,000 jobs in industrial and manufacturing sectors. Analysts warn of potential inflationary effects and disruptions in supply chains for sectors that rely on imported inputs.
