Mexico’s Congress votes to increase tariffs on imports from China and other countries.

Mexico City – On Wednesday, Mexico’s Congress approved a significant increase in tariffs on over 1,400 imported products from countries without free trade agreements with Mexico, primarily targeting imports from China. This legislative measure was passed by the Senate, following earlier approval by the lower house of Congress, with the governing Morena party leading the initiative under President Claudia Sheinbaum’s administration.

The Senate voted in favor of the tariff increases, tallying 76 votes for and five against, with 35 members opting to abstain. The decision aligns with President Sheinbaum’s assertion that these tariffs are vital for boosting domestic production and fostering economic stability in the country. The proposed increases, which could reach as high as 50%, will impact a wide range of products, including textiles, footwear, appliances, automobiles, and auto parts, with the new rates taking effect in January.

Analysts suggest that this tariff strategy may also reflect ongoing negotiations between Mexico and the United States, which remains Mexico’s primary trading partner. The tariffs could be seen as a maneuver to garner concessions from Washington regarding existing tariffs imposed on Mexican goods during Donald Trump’s presidency. The split tariffs were initially justified by the argument that China is leveraging its trade relationship with Mexico to gain access to the U.S. market.

China is anticipated to be the most adversely affected by these tariff increases, particularly given that Mexico imported approximately 0 billion worth of goods from the country in 2024 alone, second only to imports from the United States. Following the announcement of these tariffs in September, the Chinese government expressed its discontent regarding the measures.

Experts, including Oscar Ocampo from the Mexican Institute for Competitiveness, have raised concerns about the potential implications of these tariff policies. Ocampo noted that the changes may be an attempt to placate U.S. demands and negotiate reductions or exemptions from tariffs currently affecting Mexican access to the U.S. market. However, he warned that this shift in policy could backfire, disrupting supply chains and exacerbating inflation in various sectors, including automotive, textiles, and chemicals. With the Mexican economy facing sluggish growth, the long-term ramifications of these tariff increases remain uncertain.

As Mexico navigates this complex economic landscape, the impact of these tariff increases will be closely monitored by both domestic stakeholders and international trading partners.