Mexico approves tariff hikes on imports from many Asian nations

The proposal, passed earlier by the lower house, will raise or impose fresh duties on some goods like textiles, apparel, plastics and steel from countries without trade deals with Mexico. These countries include India, South Korea, China, Thailand and Indonesia.

Most products will see tariffs of up to 35 per cent.

The bill was passed with 76 votes in favour, five against and 35 abstentions, the Senate announced on X.

The Mexican government’s aim is to boost local industry, though business groups and the affected governments have objected to the decision.

This bill is softer than one that stalled in the lower house this autumn, with tariffs on about 1,400 product lines—mostly textiles, apparel, steel, auto parts, plastics and footwear—and reduced duties on roughly two-thirds of them compared with the original proposal.

Cautioning that such measures would ‘substantially undermine’ trade interests, China's Ministry of Commerce said it would track Mexico's new tariff regime and weigh its impact. "China has always opposed all forms of unilateral tariff increases and hopes Mexico will correct such unilateralist and protectionist practices as soon as possible," the ministry said.

Mexico expects the tariff changes to help generate $3.76 billion next year.

Supporters of the bill have called it as a measure to protect industries that have struggled to compete with low-cost Asian imports.

However, a global newswire report attributed Mexico’s latest tariff hike decision to an upcoming US review of the United States-Mexico-Canada Agreement (USMCA).

ALCHEMPro News Desk (DS)