Cars From China, Asia Now Face 50% Tariffs, Mexico Says

Tariffs on cars made in China and many other Asian nations will face tariffs of up to 50%, officials in Mexico said on Wednesday.

The move – described by analysts as a way to placate tariff enthusiasts in the Trump administration and protect jobs – came in a broad overhaul of import levies.

The Economy Ministry said that they will increase tariffs by varying degrees on $52 billion worth of imports across multiple sectors, including textiles, steel and automotive.

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“They already have tariffs,” Economy Minister Marcelo Ebrard told reporters when asked about the import levies on Chinese cars, which are currently 20%. “What we will do is raise them to the maximum level allowed.

“Without a certain level of protection, you almost can’t compete,” he added.

Ebrard said the measures, which come just within limits imposed by the World Trade Organization, were intended to protect jobs in Mexico, because Chinese cars were entering the local market “below what we call reference prices.”

Six other states will be affected

China’s foreign ministry condemned the news on Thursday, saying it firmly opposes countries being coerced by others and restrictions imposed under “various pretexts”.

Ministry spokesperson Lin Jian said the country hoped that Mexico would instead work with it towards global economic recovery and trade development.

“We will resolutely safeguard our own rights and interests in accordance with the actual situation,” she told reporters at a regular news briefing.

The plan still needs to be approved by Congress, but the government holds a significant parliamentary majority.

The tariffs will impact countries that do not have trade deals with Mexico, especially China, South Korea, India, Indonesia, Russia, Thailand and Turkey, the Economy Ministry said in a document.

The plan will impact 8.6% of all imports, the document said, and will protect 325,000 industrial and manufacturing jobs that were at risk.

The measures also include a 35% tariff on steel, toys and motorcycles. Textiles will see levies between 10% and 50%.

The move comes as the United States pushes countries in Latin America to limit their economic ties with China, with which it competes for influence in the region.

“The US is not going to allow China to use Mexico as a backdoor,” said Mariana Campero of the CSIS Americas Program, adding that Mexico has doubled its trade deficit with China in the last decade, hitting $120 billion last year.