Mexico Approves 50% Tariff Hike on Indian and Chinese Imports

Mexican lawmakers have approved a new up to 50% tariff hike on imports from India, China and several Asian countries, aiming to bolster local industry despite opposition from business groups and affected governments. The proposal to hike tariffs was passed first at the lower house, will raised to impose new tariffs of up to 50% for the next year on goods including autos, auto parts, textiles, clothing, plastics and steel.

The tariff was imposed without a trade deal being talked with Mexico, including China, India, South Korea, Thailand and Indonesia. The majority of products will see tariffs of up to 35%. With 76 votes in favour and 5 against, and 35 abstentions, the senate approved the bill, despite opposition from China and local business groups.

Also Read | All that glitters: Trump launches Gold Card in a bid to expedite visas for hefty fee.

Mexico's Senate on Wednesday voted in favour of the bill that imposes tariffs between 5% to 50% on more than 1,400 products from Asian nations that do not have a trade deal with Mexico.

Passage of the bill took place against the backdrop of Sheinbaum’s high-stakes trade talks with US President Donald Trump and pressure to match his priorities, fueling hopes that Mexico’s levies on Chinese goods could ease punishing US tariffs on goods like Mexican steel and aluminium.