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Mexican Congress Most of the tariff increases proposed by the government on over 1,400 imported products were approved on Wednesday China and other countries with which there are no free trade agreements Mexico,
After the lower house, the Senate passed the measure on Wednesday evening, which approved the increase before dawn. President’s Governing Morena Party claudia sheinbaumThose who said tariffs were necessary to boost domestic production control both chambers. The Senate passed this law with 76 votes in favor, five against and 35 abstentions.
Analysts say the real impetus is Mexico’s ongoing negotiations with Washington, its most important trading partner. Sheinbaum is trying to get relief from remaining tariffs imposed on Mexican imports by the Trump administration, which has accused China of using Mexico as a backdoor into the U.S. market.
The tariff increase of up to 50% starting in January will affect textiles, shoes, appliances, cars and auto parts, among others.
China will be most affected as Mexico imports $130 billion worth of products from the country in 2024, second only to the products Mexico purchases from the United States. The Chinese government was critical of the proposed tariff increase when it was announced in September.
“The real reason is related to the United States, it has to do with the review of the USMCA (free trade agreement) that is coming, in which Mexico faces negotiations to obtain tariff reductions and exemptions to access the US market,” said Oscar Ocampo, director of economic development at the Mexican Institute for Competitiveness. Mexico still faces US tariffs on the automotive sector, steel and aluminium.
But Ocampo said Mexico is bowing to an unpredictable US president donald trump and changing its commercial policy “in the wrong direction”. He said the government is creating problems for many sectors, including auto parts, plastics, chemicals and textiles, as the tariffs will cause supply chain disruptions and could increase inflation at a time when the economy is slowing.