Mexico Plans 50% Tariff on Chinese Cars

Mexico is preparing to impose a 50 percent tariff on Chinese-made cars, up from the current 15 to 20 percent, in a move widely seen as a response to pressure from the United States.

The proposal was unveiled on Wednesday in a draft bill submitted to parliament.

The Ministry of Economy presented the plan as part of a broader initiative to raise tariffs across multiple sectors on imports from countries without trade agreements with Mexico.

Officials argue the measure is aimed at protecting national industry, replacing Asian imports with domestic production, and improving Mexico’s trade balance.

If approved, the bill would raise duties on light vehicles to 50 percent, while tariffs on auto parts would range from 10 to 50 percent. Current duties on these items range from zero to 35 percent.

The ruling leftist coalition, which holds a strong majority in both chambers of parliament, is expected to secure swift approval of the proposal.

President Claudia Sheinbaum announced in March that her administration would reassess tariffs on Chinese products following pressure from Washington, which fears Mexico could become a gateway for Chinese goods entering the US market. 

She has also criticized the impact of Chinese imports on Mexico’s domestic industries.

Mexico is particularly vulnerable to US trade policy shifts, with around 80 percent of its exports destined for the United States.

The country exports roughly three million vehicles annually to its northern neighbor, including cars and trucks assembled in Mexico at plants owned by major US automakers.