Mexico to raise car tariffs on China to 50% in bid to protect jobs

Mexico has announced a sharp increase in tariffs on cars imported from China and other Asian nations. The rate will rise from 20% to 50%, the maximum allowed under World Trade Organization rules.

Officials say the move is designed to protect Mexico’s automotive industry and safeguard more than 325,000 jobs at risk from low-cost imports. The tariffs will also apply to steel, textiles, toys, motorcycles, and other goods. In total, the measures will impact around $52 billion worth of imports.

Economy Minister Marcelo Ebrard defended the decision, saying Chinese vehicles were being sold “below reference prices,” undercutting local manufacturers. “Without a certain level of protection, you almost can’t compete,” he said.

The policy comes as the United States pressures Mexico and other Latin American countries to curb economic ties with China. Washington fears Beijing could use Mexico as a “backdoor” into the U.S. market, where many Mexican-made cars are exported.

China has strongly opposed the move, calling it an unfair restriction. Foreign ministry spokesperson Lin Jian said Beijing would “safeguard its rights and interests” and urged Mexico to work towards global trade recovery instead of barriers.

If approved by Congress, the tariffs will cover countries without trade deals with Mexico, including South Korea, India, Indonesia, Russia, Thailand, and Turkey. The government expects to raise an extra $3.7 billion in revenue next year from the new tariffs.

Analysts say the decision balances U.S. political pressure with Mexico’s need to protect its industry. “The Mexicans are trying to placate the Americans, but also protect an industrial model that has worked for 30 years,” said John Price of Americas Market Intelligence.

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