Mexico Raises Tariffs Amidst US Negotiation Pressure

Mexico's Congress approved significant tariff hikes on 1,400 imports, impacting products from China and other nations lacking free trade agreements. This aligns with President Sheinbaum's push to boost domestic production. Analysts suggest these tariffs also act as leverage in ongoing trade discussions with the United States.

Mexico's Congress has given the green light to major tariff hikes on over 1,400 products from China and other countries without free trade agreements. The decision, passed overwhelmingly by both legislative chambers, is seen as a move to bolster domestic production and address economic concerns.

President Claudia Sheinbaum's governing Morena party spearheaded the legislative push, asserting the need for increased tariffs to invigorate local industries. The Senate voted decisively in favor, with 76 supporting and only five opposing the measure. Analysts, however, believe the underlying motive lies in ongoing negotiations with Washington.

The increased tariffs, which could soar to 50%, target textiles, shoes, and automotive parts starting January. The Chinese government has expressed strong disapproval, criticizing the measure, while experts warn it could disrupt supply chains and exacerbate inflation in a slowing economy affected by existing US tariffs on critical sectors.

(With inputs from agencies.)