Mexico Moves to Boost Local Industry with Tariff Hikes on Asian Imports

Mexico's Senate approved tariff hikes of up to 50% on imports from China and other Asian nations, aiming to support local industries. The measure seeks to generate $3.76 billion in additional revenue and prepare for the USMCA review, despite opposition from business groups and affected countries.

In a decisive move to support local industries, Mexico's Senate has sanctioned tariff hikes of up to 50% on imports from China and other Asian countries, despite pushback from business groups and involved nations. The measure, intended to bolster domestic production, reflects a broader economic strategy.

Passing with 76 votes in favor, 5 against, and 35 abstentions, the bill will affect goods like autos, textiles, plastics, and steel. Analysts suggest the revised tariffs are designed to align with the United States-Mexico-Canada trade agreement review, while also generating an estimated $3.76 billion in additional revenue.

Senators from opposition and ruling parties presented contrasting viewpoints. While some argued for the protection of local jobs, others highlighted the consumer cost of increased import duties. Nevertheless, the bill progresses as Mexico aims to strengthen its fiscal position and ensure compliance with international trade dynamics.