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Mexico approves tariff hike as China warns the move harms key trade interests
China criticises Mexico’s decision as harmful to partners and cautions that the move may disrupt bilateral trade and invite further retaliatory steps.
Mexico approves tariff hike as China warns the move harms key trade interests
Mexico's tariff plan targets major import categories such as automobiles, textiles and appliances, affecting Chinese shipments most. [File photo] / Reuters
4 hours ago

Mexican lawmakers have backed a measure to raise tariffs on goods from China and other countries that have no trade agreement with Mexico, a move Beijing said would harm its interests.

The bill was spearheaded by President Claudia Sheinbaum and approved by the Senate 76-5 on Wednesday night.

It increases tariffs on imports of automobiles, textiles, clothing, plastics, appliances and other products — primarily affecting Chinese goods.

Changing tariffs will also affect South Korea, India, Indonesia, Russia, Thailand, Türkiye, Taiwan and Brazil.

Sheinbaum must now ratify the tariffs, expected to take effect January 1 2026.

The proposed tariff rates had been lowered from an initial suggestion of 50 percent, down to 20 or 35 percent for most categories of goods.

The 50 percent rate would still apply in some cases.

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‘Act of prudence’

The move would "substantially harm the interests of relevant trading partners, including China", Beijing said on Thursday.

"China... hopes Mexico will promptly rectify this erroneous practice of unilateralism and protectionism," a Chinese commerce ministry spokesperson said in a statement.

The ministry also noted an ongoing trade barrier investigation China launched against Mexico in September, suggesting the possibility of retaliation.

Beijing has previously said it opposes any "coercion" to impose restrictions on its exports, and Thursday's statement urged Mexico to "act with prudence".

Mexico's Sheinbaum administration has sought to strengthen the domestic market and reduce dependence on imports, though opponents of the tariff plan warned it could lead to price hikes at home.

There were 35 abstentions on the vote, which came amid heavy pressure from US President Donald Trump, because senators said the bill was rushed and needed more analysis on its impact on inflation.

The lower house of Congress approved the proposal by 281 votes to 24, with 149 members not voting, arguing that further discussion was needed.

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SOURCE:AFP