Mexico Slaps 50% Tariff on Chinese Cars to Protect Local Jobs
Mexico announced on Wednesday that it plans to raise tariffs on Chinese cars imported from China and other Asian countries to 50%, as part of a wider overhaul of import levies aimed at protecting domestic jobs. The move, however, still requires approval from Congress, where the ruling party holds a significant majority.
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The Ministry of Economy said the new measures will increase tariffs across multiple sectors, including textiles, steel, and automotive, affecting imports worth $52 billion.
“They already have tariffs,” Economy Minister Marcelo Ebrard told reporters regarding Chinese cars, which currently face a 20% tariff. “What we will do is raise them to the maximum level allowed. Without a certain level of protection, you almost can’t compete.”
Ebrard added that the measures comply with World Trade Organization (WTO) limits and are designed to protect jobs in Mexico, as Chinese cars have been entering the local market at prices “below what we call reference prices.” Analysts have also suggested that the move could be aimed at appeasing the United States amid ongoing trade discussions.