BY: Khushhboo Kabra
Mexican lawmakers have passed a package of new tariffs affecting hundreds of products, many of which are sourced from China.
The Mexican Senate passed the measures, which President Claudia Sheinbaum has stated are necessary to promote domestic production, on Wednesday.
The tariffs will go into effect on January 1, 2026, and will apply to commodities such as metals, cars, apparel, and appliances. Dozens of nations without a free trade deal with Mexico will be impacted, including Thailand, India, and Indonesia.
The decision comes as Mexico negotiates with the United States over high import levies that President Donald Trump has threatened to levy on the country.
The measures will levy tariffs of up to 50% on over 1,400 products.
The tariffs will significantly affect the interests of trading partners notably China, Spokesperson of Commerce Ministry on Thursday
A probe into Mexico’s trade policy is underway, they said, pushing the country to “correct” its mistake.
This week, China also announced plans to increase its involvement with Latin American and Caribbean countries, with the goal of deepening regional partnerships through commerce and innovation.
Chinese corporations have been extending their presence in Mexico in recent years, with automakers such as BYD and MG establishing operations there.
However, Beijing might be utilising Mexico to get around US tariffs, according to Washington.
The BBC has requested a response from the Thai, Indian and Indonesian embassies in Mexico.
In an effort to lower tariffs that the White House has threatened to put on the nation, Sheinbaum’s government is in negotiations with the Trump administration. They include possible 50% taxes on aluminium and steel from Mexico.
As part of Washington’s efforts to put pressure on nations to do more to halt the flow of the synthetic narcotic fentanyl into America, Trump has also threatened to impose additional tariffs on Mexico for a number of reasons, including a 25% levy.
Trump accused Mexico of breaking a deal that provides water to American farmers and threatened to levy a fresh 5% tariff on the country on Monday.
He wrote, “Our American farmers deserve this vital water thus, it is incredibly unfair,” on social media.
Trump was alluding to a treaty that has been in place for more than 80 years and provides the United States with water from Rio Grande tributaries.
The United States has been accusing Mexico of violating the provisions of the agreement for decades. The United States is Mexico’s largest commercial partner.