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Mexican City has approved tariff hikes of up to 50 per cent from the year 2026 on import of select products from Asian countries including from India and China in order to protect the national industry and producers, local media reported.
As per a report in the established Mexican news outlet El Universal, Mexico's Senate, the country's upper house of Parliament on Wednesday (local time) modified various tariff classifications of the General Import and Export Tax Law to impose duties ranging from 5 to 50 per cent on goods ranging from everyday consumer goods such as clothing, footwear, appliances, and furniture. Specifically, the decree establishes tariffs on the import of various goods in the auto parts, light cars, clothing, plastics, steel, household appliances, toys, textiles, furniture, footwear, leather goods, paper and cardboard, motorcycles, aluminium, trailers, glass and soaps, perfumes and cosmetics as per the El Universal news report. The Senate passed the bill, with 76 votes in favour, 5 against, and 35 abstentions with tariffs on about 1,400 different products from countries such as China , South Korea and others that do not have current trade agreements with Mexico. Senator Marko Cortes, from the National Action Party (PAN), argued that the bill approved in San Lazaro only reached the Senate this Wednesday, so he questioned the intention of the legislators from Morena, the Green Party, and the Labor Party to approve a ruling without having read it. As per the report in the Mexican news outlet Cristina Ruiz , a member of the PRI party , warned that the social impact of the tariff package could also be significant, as it affects everyday consumer goods such as clothing, footwear, appliances, and furniture. According to Mexican economic news outlet, El financier, The Senate approved imposing tariffs on China and other Asian countries, in a move that analysts believe is intended to appease the US ahead of the United States Mexico Canada review. According to the Mexiconewsdaily.com, the Mexican government is seeking to provide greater protection for the country's industry -- which includes sectors that struggle to compete with cheap imports -- and increase domestic output. "We believe that supporting [Mexican] industry is to create jobs," Deputy Ricardo Monreal, Morena's leader in the Chamber of Deputies was cited in the news outlet The government is also aiming to reduce reliance on imports from Asian countries, especially China, a country with which Mexico has a significant trade imbalance. Among the other countries that will be affected by the proposed higher tariffs are India, South Korea, Thailand, Indonesia, Brazil, South Africa and the United Arab Emirates. The government estimated earlier this year that the proposed tariffs would generate additional revenue of 70 billion pesos (US $3.8 billion) per year as per the mexiconewsdaily.com. Meanwhile, China on Thursday said that it has has "always opposed unilateral tariff hikes in all forms", and urges Mexico to "correct its wrong practices of unilateralism and protectionism at an early date." State media Xinhua quoted a spokesperson of the Chinese Commerce Ministry to state that Beijing "will closely monitor the implementation of the Mexican measures and further evaluate their potential impact." "The measures, if implemented, will substantially harm the interests of relevant trading partners, including China, although the proposal approved did include some adjustments from the September version, such as a certain degree of reduction in the proposed tariff rates for certain auto parts, light industrial products, and textiles and garments" the Chinese spokesperson said. (ANI)
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