by Mexico Increases Tariffs on Chinese Cars
Mexico plans to more than double tariffs on vehicles from China to protect the local industry. These measures will affect 1,463 product categories, including steel, furniture, and electronics. According to estimates, up to 320 thousand jobs could be at risk if cheap imported goods continue to flood the market.
Automotive Industry Under Threat
The automotive industry is one of the key sectors of the Mexican economy, and the government indicates that it can no longer ignore the flow of cheap imports. Such phenomena have become quite common: even Dodge offers models that are rebranded Chinese cars, such as the Attitude sedan and the Journey crossover.
Statements from Government Officials
Minister of Economy Marcelo Ebrard Casaubon stated during a recent event that the country is taking measures to protect strategic industrial sectors by introducing new tariffs. He emphasized that these tariffs will be aimed at goods imported from countries with which Mexico does not have free trade agreements.
One of the government’s main concerns is passenger cars, which, according to Ebrard, are sold at prices below cost in order to capture market share. This is a clear reference to Chinese manufacturers. The Minister also noted that auto parts and steel are imported at extremely low prices, creating a need for intervention to preserve jobs.
Tariff Increase
During a Q&A session with local media, Ebrard reported that vehicles imported from China and other Asian countries are already subject to a 20 percent tariff. However, they are entering the Mexican market at prices below the control levels, so the government plans to raise the tariff to 50 percent.
Mexico puede innovar en todos los campos . Desde hoy tenemos aeronave propia , pronto vendrán más !! pic.twitter.com/w5T7cqxmvM
Broad Range of Actions
The government is also considering broader measures, as the increased tariffs will affect not only cars but also electronics, toys, and furniture. Ebrard noted that about 320 thousand jobs could be at risk.
According to Reuters reports, the new tariffs must be approved by Congress and could affect a number of countries besides China. Among them are South Korea, India, Indonesia, Russia, Thailand, and Turkey.
These steps demonstrate how seriously Mexico takes protecting national production. Increasing tariffs may slow the penetration of Chinese goods, but it could also lead to trade tensions with the involved countries. Many experts believe that such decisions can have both positive and negative consequences for the economy, especially in the context of globalization and market interdependence.
