Mexico's Senate Approves Tariff Hikes on Asian Imports to Protect Local Industry

Mexico's Senate approved up to 50% tariff hikes on imports from China and other Asian countries in 2026 to protect local industries. This move faced opposition from business groups and is seen as appeasing the U.S. while generating additional revenue amid concerns over trade relationships.

Mexico's Senate has endorsed a plan to significantly raise tariffs, up to 50%, on imports from China and several other Asian countries beginning in 2026. The controversial move is aimed at bolstering local industries in sectors like textiles, autos, and steel, despite strong opposition from business circles.

Initially passed by the lower house, the bill imposes tariffs on goods from nations lacking a trade agreement with Mexico. China, among the hardest hit, responded by warning that these measures could adversely affect bilateral trade interests and labeled the practice as 'unilateral and protectionist.'

Although framed as a protectionist move to appease the U.S. and strengthen local production chains, the measure is anticipated to generate $3.76 billion in additional revenue for Mexico. Critics argue about the true economic intent, given the upcoming review of the USMCA, while supporters emphasize job protection and economic patriotism.

(With inputs from agencies.)