Dec. 11 (UPI) — Mexico’s congress has approved charging up to 50% tariffs on Chinese imports Wednesday.
Mexican President Claudia Sheinbaum proposed the tariffs in September and said they are a way to boost domestic production. But others, like China, have said it’s a way to align with President Donald Trump, who has been pressuring other countries to distance themselves from China.
Mexico’s congress approved the tariffs Wednesday, and Sheinbaum is expected to sign the bill. The law would create up to 50% tariffs on China and any other country with which Mexico doesn’t have a trade agreement, including Thailand, India and Indonesia. The tariffs would take effect Jan. 1 and will include more than 1,400 products, like cars, metals, appliances and clothing.
After the United States, China is Mexico’s second-largest exporter. The United States sold $334 billion to Mexico last year, and China sold $130 billion in goods, The New York Times reported. China buys little from Mexico, which is another reason for the tariffs, Sheinbaum has said.
The Chinese government has warned Mexico to “think twice” about imposing the levies, saying it would harm China and other countries. It said the move was made “under coercion to constrain China,” alluding to Trump’s pressure.
The Chinese Ministry of Commerce said in a statement Thursday that the tariffs would “substantially harm” the country and others. It said for Mexico to “correct its erroneous practices of unilateralism and protectionism as soon as possible,” The Times reported.
Mexico is in talks with Trump, trying to reduce tariffs. The United States imposes 50% tariffs on Mexican steel and aluminum. Trump has threatened to add more to the tariffs for several reasons, including synthetic fentanyl and water rights from the Rio Grande.