Mexico has increased import tariffs by up to 50% on many goods from China and several other Asian countries to protect domestic production and increase government revenue.

On December 10, the Mexican Senate approved increasing or imposing tariffs of up to 50% on imported goods from China and several other Asian countries next year, in an effort to boost domestic industrial production.

According to measures previously passed by the House of Representatives, many goods such as automobiles, auto parts, textiles, clothing, plastics, and steel from countries that do not have trade agreements with Mexico, including China, India, South Korea, Thailand, and Indonesia, will be subject to tariffs of up to 50%. The majority of items will be subject to a maximum tariff of 35%.

The current bill is considered "softer" than the previous proposal introduced in the House in the fall, which included about 1,400 tariff lines primarily on textiles, clothing, steel, auto parts, plastics, and footwear. This new plan has reduced tariffs on about two-thirds of the items compared to the original proposal.

Analysts and the private sector estimate that this move will boost revenue by approximately $3.76 billion, as Mexico seeks to reduce its budget deficit.

The tariff increase comes as Mexico raised tariffs on Chinese goods earlier this year.

Meanwhile, China's Ministry of Commerce stated that the new measures "will significantly harm the interests of our trading partners." The ministry hoped Mexico would "soon adjust these unilateral and protectionist measures."

Source: VTV

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