Mexico is Fed Up With Chinese Automobile Imports | Carscoops

      Tariffs on Chinese vehicles and inexpensive imports are expected to increase significantly due to a comprehensive proposal designed to safeguard local employment.

      Mexico intends to more than double tariffs on vehicles from China to protect its domestic industry.

      The new tariffs will encompass 1,463 product categories, including steel, furniture, and electronics.

      An estimated 320,000 jobs may be jeopardized if low-cost imports continue to dominate the market.

      The automotive sector is integral to Mexico’s economy, and government officials have indicated they are no longer willing to tolerate the influx of cheap imports. These imports have become increasingly prevalent, with even Dodge providing some rebranded Chinese models such as the Attitude sedan and Journey crossover.

      During an event earlier today, Economy Secretary Marcelo Ebrard Casaubon announced that the country is taking steps to "protect Mexico's strategic industries" by implementing new tariffs. These tariffs will target goods imported from nations with which Mexico does not hold free trade agreements.

      One of the primary concerns for the administration is light-duty vehicles, with Ebrard asserting that these products are being sold at "prices below inventory" to capture market share. This statement implicitly refers to Chinese manufacturers, and Ebrard emphasized, "The Mexican automotive industry constitutes 23 percent of national manufacturing, so we need to safeguard it." He also mentioned that auto parts and steel are being imported at extremely low prices, necessitating government intervention to preserve jobs.

      In a subsequent Q&A session with local media, Ebrard noted that vehicles imported from China and other Asian nations are currently subject to a 20 percent tariff. However, since these vehicles are entering Mexico at prices below the reference values, the tariff is set to increase to 50 percent.

      More Than Just Vehicles

      The government seems poised to implement broad actions, targeting 1,463 product categories, including those previously mentioned as well as electronics, toys, and furniture. Ebrard suggested that approximately 320,000 jobs are at risk.

      According to Reuters, these tariffs will require Congressional approval and may affect various countries beyond China, prominently including South Korea, India, Indonesia, Russia, Thailand, and Turkey.