By Diego Oré
MEXICO CITY, Dec 10 (Reuters) – Mexico’s lower house early Wednesday approved tariffs of up to 50% next year on imports from China and several other Asian countries, aiming to boost domestic production and address trade imbalances.
With 281 votes in favor, 24 against, and 149 abstentions, the chamber passed the bill, which still requires Senate approval, despite opposition from China and local business groups.
The proposal would impose or raise tariffs – mostly up to 35% – throughout 2026 on goods such as automobiles, auto parts, textiles, clothing, plastics and steel from China and other Asian countries without a trade deal with Mexico, including India, South Korea, Thailand and Indonesia.
Mexico’s Economy Ministry presented the proposal in September, but struggled to gain broad support despite the ruling Morena party’s majority in Congress.
President Claudia Sheinbaum’s government claims the measure aims to strengthen domestic production and address trade imbalances with China.
The approved bill is more flexible than the original, which stalled this fall after strong opposition from China.
MOTIVES AND IMPACT
Analysts and the private sector argue the move is aimed at appeasing the U.S. ahead of the next review of the United States-Mexico-Canada trade agreement (USMCA), and say it is also intended to generate $3.76 billion in additional revenue next year as Mexico seeks to reduce its fiscal deficit.
Representative Claudia Selene Avila from the Morena party said during the overnight session in the lower chamber that the tariff reforms will have no impact on inflation.
Mexico’s automotive sector, one of the largest globally, warned the tariffs could cut access to essential imported components, such as touchscreens for digital dashboards.
Last week, U.S. Trade Representative Jamieson Greer argued against Canada and Mexico being used as export hubs for China, Vietnam, Indonesia and other major manufacturing countries.
The proposal would also affect India, one of Mexico’s fastest-growing trading partners.
(Reporting by Diego Diego Ore; Additional reporting by Aida Pelaez-Fernandez; Editing by Andrew Heavens and Chizu Nomiyama)


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