Mexico's Senate Approves Tariff Hikes to Bolster Local Industry

Mexico's Senate approved tariff increases of up to 50% on imports from China and other Asian countries. The move is intended to protect local industries and reduce fiscal deficits, but faces criticism from China and business groups. The tariffs are also seen as appeasing U.S. trade interests.

Mexico's Senate has approved a plan to implement tariff hikes of up to 50% on imports from China and several other Asian countries, aiming to strengthen local industry. The move has sparked opposition from business groups.

The approved bill, which passed with 76 votes in favor, proposes to introduce or increase duties on certain products such as autos, textiles, and steel by 2026, focused on goods from countries without trade deals with Mexico, including China, India, and South Korea.

China responded by criticizing the move, saying it undermines trade interests. Analysts suggest the tariffs serve to appease the U.S. ahead of the USMCA review and help generate revenue to combat fiscal deficits.

(With inputs from agencies.)