Mexico approves up to 50% China tariffs
Mexico’s Congress passed legislation Wednesday authorizing tariffs of up to 50% on imports from countries without trade agreements, notably China, with the Senate voting 76–5 (35 abstentions) after lower-house approval earlier in the day. President Claudia Sheinbaum, who proposed the move in September, is expected to sign it for January implementation, impacting goods such as auto parts, textiles, plastics, and metals as Mexico seeks to bolster domestic manufacturing and curb its trade deficit with China.
📌 Key Facts
- Senate vote: 76–5 with 35 abstentions; lower chamber passed the bill the same day
- Tariffs up to 50% apply to countries without trade deals; sectors include auto parts, textiles, furniture, plastics, steel, aluminum
- Effective January pending President Sheinbaum’s signature; proposal first floated in September
- China exported about $130B to Mexico last year; the U.S. exported about $334B
📊 Relevant Data
Mexico had a trade deficit with China of approximately $120 billion in 2024.
China remains modest player in U.S.–Mexico trade despite growing ... — Dallas Fed
There is evidence that China is circumventing U.S. tariffs by exporting goods to Mexico, which are then re-exported to the United States.
Is China circumventing US tariffs via Mexico and Canada? — Brookings
Foreign direct investment from China to Mexico reached US$477 million in 2024.
China: Foreign trade, investments, migration and remittances — DataMexico (economia.gob.mx)
Cumulative net foreign direct investment from China to Mexico from 2017 to 2024 was $2.3 billion.
China expands Mexico investment but notably lags U.S., other G7 ... — Dallas Fed