Mexico proposes new import taxes on 1,400 products to boost production

Mexico's government submitted a budget proposal Tuesday that would impose new import taxes on more than 1,400 products many from Asian nations to strengthen national production at a time when the United States is pressuring its North American trade partner to present a united front against China.

Treasury Secretary dgar Amador did not mention China specifically, but said that the proposed 2026 budget will affect countries with which we do not have a commercial treaty.

The tariffs will be within the guidelines of the World Trade Organisation and the Mexican government would be sensitive to any impacts on production or prices, he said.

Amador did recognise that the measures are happening within the discussion and future commercial conversations with our North American partners, but insisted the goal was strengthening domestic production and consumption, as well as reducing trade deficits.

Mexico has been engaged in increasingly difficult trade negotiations with the Trump administration since the start of the year. US President Donald Trump has threatened to increase 25 per cent tariffs that he applied earlier this year on some products not covered by the free-trade agreement with Mexico and Canada.

Mexico had started applying tariffs of its own on some imports like textiles in December and increased operations to seize pirated products from Asia.

Since Mexico's governing party holds majorities in both chambers of Congress, the budget is expected to be approved.

The measures aimed at Asian imports had been rumoured and Guo Jiakun, spokesman for the Chinese government, criticised the proposal in August.

Mexico is China's second-largest trading partner in Latin America, and China is Mexico's third-largest export destination, he said. China firmly opposes restrictions imposed on China under various pretexts and under coercion from others, which harm China's legitimate rights and interests.