Mexico to Impose 50% Tariff on Chinese Cars Amid US Pressure

Sana'a: The Mexican government has unveiled plans to increase tariffs on Chinese cars to 50%, a significant rise from the current rates of 15% and 20%. This move comes in response to pressure from the United States, as detailed in a draft law recently submitted to Congress. According to Yemen News Agency, the Mexican Ministry of Economy presented this proposal within a broader bill aimed at raising tariffs across multiple sectors for countries lacking trade agreements with Mexico. The intention behind the bill is to safeguard domestic industries. Should the bill pass, light vehicles imported from China will face a 50% tariff, while auto parts will be taxed between 10% and 50%, up from the existing range of 0% to 35%. The draft law emphasizes the goal of "protecting domestic industry in strategic sectors, substituting Asian imports with domestic production, and improving Mexico's trade balance." This legislative effort aligns with remarks made by Mexican President Claudia Sheinbaum in March. She announced th at her administration would reassess tariffs on Chinese goods, influenced by US pressure to prevent Mexico from serving as a gateway for Chinese products into the United States. Sheinbaum has also voiced concerns about the adverse effects of Chinese imports on Mexico's industrial sector. Mexico finds itself particularly susceptible to US tariff policies, given that 80% of its exports are destined for the United States. The country annually exports approximately three million vehicles to the US, including those manufactured in Mexican plants operated by American automotive firms.