Mexico plans to place a 50% tariff on cars from China and other Asian countries, in a move that appears designed to placate the trade concerns of the US and the Trump administration.
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The measure, which would more than double the current tariff (15-20%), has been proposed to lawmakers in Mexico as part of a package of tariffs on some 1,400 products. The Trump administration has put pressure on Mexico to reduce Chinese imports.
The legislative proposal is seen as consistent with the Mexican government’s aim to reduce reliance on imports and protect Mexican industry.
Mexico’s growing trade with China, and Chinese investment in Mexico, are seen as a potential problem for Mexico in its trading relationship with its northern neighbour.
Next year sees a review of the United States-Mexico-Canada Agreement (USMCA), the North American free trade pact that superseded NAFTA in 2020.
In recent years, sales of Chinese cars have soared in Mexico, according to GlobalData.
