Mexico Raises Asian Car Tariffs to 50%, China Warns Retaliation

Mexico, under President Claudia Sheinbaum, has proposed increasing tariffs on Asian imports, notably raising tariffs on Chinese cars from 20% to 50%, as part of a broader strategy to protect domestic industries and support economic growth. This move, pending legislative approval, affects about $52 billion in imports and targets countries without free trade agreements with Mexico, including China, South Korea, and India. China has strongly condemned the tariff hikes, warning Mexico against yielding to what it calls U.S. coercion, and has threatened retaliatory measures to protect its interests, framing the tariffs as appeasement to unilateral bullying by Washington. Mexican officials reject the notion that the tariffs are politically motivated, emphasizing compliance with WTO rules and focusing on industrial protection rather than geopolitical concerns. The Mexican automotive industry supports the tariffs, viewing them as a way to level the playing field, increase employment, and enhance consumer protections. Additionally, the tariffs are expected to disadvantage South Korean automakers, who lack a trade deal with Mexico, while benefiting Japanese competitors.