50% tariffs on Chinese cars not designed against China: Mexico

MEXICO CITY: Mexico President Claudia Sheinbaum denied Friday that a proposed new tariff of up to 50 per cent on imports from certain countries was a coercive measure targeting China.

Beijing said Thursday it “firmly opposes any coercion” after Sheinbaum announced higher duties on countries with which Mexico has no trade agreements, including a 50 per cent tariff on car imports from China — up from 15-20 per cent.

“These are not coercive measures and they are not against China… they are not against any country in particular,” Sheinbaum told reporters, adding there would be talks with Beijing next week.

US President Donald Trump has repeatedly urged trading partners to increase duties on China.

It was earlier reported that Trump asked the European Union to slap tariffs of up to 100 per cent on China and India for their Russian oil purchases

However, it is unlikely that Europe would agree with the request.

CHINA ABUSING FREE-TRADE DEAL

The White House has said Chinese producers are abusing a free-trade deal between the United States, Mexico and Canada to send goods northward via Mexico, tariff-free.

Mexico replaced China in 2023 as the United States’ largest trading partner, with the Latin American country’s northern neighbour buying more than 80 per cent of its exports.

BOOSTING DOMESTIC PRODUCTION

Sheinbaum insisted Mexico’s new tariffs were aimed at boosting domestic production, and denied the move had anything to do with pressure from Washington.

Mexico, she added, wants to “continue having a very good relationship” with China.

Sheinbaum has so far managed to stave off a blanket 30 per cent US import tariff, though Mexico’s automotive, steel and aluminum sectors — like those of other countries — have been hit with higher levies.

Three out of every 10 light vehicles sold in Mexico are Chinese, according to official data.

Other countries affected by Mexico’s tariff rise include South Korea, India, Indonesia, Russia, Thailand, and Turkey.

Sheinbaum’s ruling party holds a majority in Congress, and a bill containing the proposed tariff rise is likely to pass.