Mexico approves up to 50% tariffs on China and other countries

Mexican lawmakers have approved a package of new tariffs, impacting hundreds of products, many of which come from China.

The measures, which President Claudia Sheinbaum has said are needed to boost domestic production, were passed by the Mexican Senate on Wednesday.

The levies are set to take effect on 1 January 2026 and will apply to goods like metals, cars, clothing and appliances. Dozens of countries that do not have a free trade agreement with Mexico will be affected, including Thailand, India and Indonesia.

The move comes as Mexico is in negotiations with the US over steep import taxes that President Donald Trump has threatened to impose on the country.

The measures will impose tariffs of up to 50% on more than 1,400 products.

The levies will "substantially harm the interests of trading partners, including China," said a spokesperson for Beijing's commerce ministry on Thursday.

An investigation into Mexico's trade policy is in progress, they added, urging the country to "correct" its decision.

This week, China also signalled its plans for more involvement with Latin American and Caribbean countries, as it aims to deepen its relationships in the region through trade and innovation.

Chinese companies have been expanding their footprint in Mexico in recent years, with car brands like BYD and MG establishing operations in the country.

But Washington has said Beijing may be using Mexico as a way to bypass US tariffs.

The BBC has contacted the embassies in Mexico of Thailand, India and Indonesia for comment.

Sheinbaum's government is in talks with the Trump administration as it tries to reduce tariffs on the country. They include 50% duties on Mexican steel and aluminium.

Trump has also threatened to impose extra tariffs on Mexico for various reasons, including a 25% levy as part of Washington's measures to pressure countries to do more to stop the flow of the synthetic opioid fentanyl into America.

On Monday, Trump threatened to impose a new 5% tariff on Mexico, accusing it of violating an agreement that gives American farmers access to water.

"It is very unfair to our US Farmers who deserve this much needed water," he posted on social media.

Trump was referring to a more than 80-year-old treaty that grants the US water from Rio Grande tributaries.

For decades the US has accused Mexico of not meeting the terms of the agreement.

The US is Mexico's largest trading partner.