Mexico slaps steep tariffs on Asian imports to gain leverage in US trade talks

Mexico will impose import taxes of up to 50% on more than 1,400 products from China and other Asian nations, in an effort to bolster domestic production while absorbing some of the tariff pressure excerpted on the country by the Trump administration.

President Claudia Sheinbaum said the new tariffs, unveiled in her administration’s budget proposal, are designed to offset the impact of US duties on certain Mexican exports, according to AP reporting, particularly in the automotive sector, which makes up 23% of the country’s manufacturing.

Items subject to the new duties include light vehicles, auto parts, textiles, footwear, plastics, electronics, toys, and a range of other goods.

With the ruling party holding majorities in both chambers, the budget is expected to pass Congress with little difficulty.

Economy Secretary Marcelo Ebrard stated on September 10 that the tariffs would cover 8.6% of Mexico’s imports and apply only to countries without free trade agreements with Mexico.

The affected products already faced an average tariff of 16%, but Ebrard noted that they will now rise “to the maximum permitted by international agreements.”

China will bear the brunt, as Mexico imported $130 billion worth of goods from the country in 2024, second only to imports from the United States. Other major exporters to be hit include South Korea, Thailand, India, the Philippines, and Indonesia.

Mexican officials believe the tariffs could strengthen Mexico’s negotiating position with Washington, which has pressured Mexico to curb Chinese imports, some of which the US claims are routed through Mexico as a “backdoor” into the American market.

Mexico continues efforts to negotiate relief from steep US tariffs — including 25% on automobiles and 50% on steel and aluminium — even as it prepares, alongside Canada and the United States, for a review of their free trade agreement.

By Nazrin Sadigova