Mexico plans to slap 50% tariff on Chinese cars as it faces Trump's pressure

[Economic Tariffs Concept]
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Mexico plans to impose as much as 50% tariff on cars from China, significantly raising it from the current rate of 20%, in what the government describes as a move to protect domestic industry and jobs.

However, analysts widely view this as a response to increasing U.S. pressure and trade concerns. The measures also affect items like auto parts, steel, toys and furniture, with rates of 10% to 50%, depending on the category.

The new tariff will apply to cars from China and other Asian countries with which Mexico does not have a free trade agreement, including South Korea, India, Indonesia, Russia, Thailand, and Turkey.

"We are going to take it higher to up to 50 per cent, which the World Trade Organization allows us to do. Why? Because the prices at which they are arriving in Mexico are below what we call reference prices," said [https://www.businesstimes.com.sg/international/global/mexico-plans-50-tariff-chinese-cars-us-canada-talks] Economy Minister Marcelo Ebrard on the sidelines of an event in the state of Mexico. “The main objective is to protect jobs.”

"Without a certain level of protection, you almost can't compete," he added.

U.S. and Canada have a free-trade pact with Mexico known as the US-Mexico-Canada Agreement, meaning they’d be unaffected by the tariffs. The U.S. pushes countries in Latin America to limit their economic ties with China and not to become a back door for tariff-free Chinese goods entering the American market.

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