Mexico's New Tariff Hikes: Shielding Local Industries

Mexico's Senate has approved tariff hikes of up to 50% on imports from China and other Asian countries, starting in 2026. The move, opposed by business groups and affected governments, aims to protect local industries by imposing duties up to 35% on various goods.

In a significant move, Mexico's Senate gave the green light on Wednesday to tariff increases of up to 50% on imports from China and other Asian nations, effective next year. This strategic decision seeks to fortify the local industry despite pushback from business groups and impacted foreign governments.

The Senate's approval follows an earlier endorsement by the lower house, establishing a framework to significantly alter Mexico's trade landscape by 2026. It will ramp up or introduce new duties—primarily reaching 35%—on products such as automobiles, auto parts, textiles, apparel, plastics, and steel. These changes particularly target nations lacking trade pacts with Mexico, including China, India, South Korea, Thailand, and Indonesia.

This policy shift underscores a broader effort by Mexico to bolster its domestic manufacturing sector, although it has faced criticism and opposition from those concerned about the potential economic ramifications and strained international relations.

(With inputs from agencies.)