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Mexico Proposes 50% Tariffs on Chinese Imports as It Seeks U.S. Trade Relief

Semafor
05:30 PM, 12/09/2025
Mexico Proposes 50% Tariffs on Chinese Imports as It Seeks U.S. Trade Relief

Mexico’s Congress is voting on a proposal to impose 50% tariffs on Chinese imports in an effort to appease the White House and potentially lift U.S. levies on steel and aluminum. President Claudia Sheinbaum says the move would strengthen Mexico’s stance ahead of next year’s trilateral trade-agreement review with the U.S. and Canada. Separately, President Donald Trump has threatened further tariffs over a water dispute, but Mexican officials say a historic drought limits their ability to comply with U.S. demands.

Mexico’s Congress began voting today on a government proposal to raise tariffs on imports from China to 50%. The move is presented by the administration as a strategic effort to placate the White House and potentially secure relief from U.S. levies on steel and aluminum.

Why the Measure Was Proposed

President Claudia Sheinbaum’s government argues that higher tariffs on Chinese goods could strengthen Mexico’s negotiating position ahead of next year’s review of the trilateral trade agreement with the United States and Canada. Officials say the measure is intended to show alignment with U.S. concerns about trade imbalance and unfair competition from subsidized Chinese exports.

U.S. Response and Wider Context

On Monday, U.S. President Donald Trump threatened additional tariffs on Mexican goods in the context of a long-running dispute over water. Mexican officials have signaled they are unlikely to meet the U.S. demands tied to that dispute because farmers and cattle ranchers are grappling with a historic drought that limits available remedies.

Possible Implications

If enacted, 50% tariffs on Chinese imports could reshape trade flows and push manufacturers to reconsider supply chains. The measure also carries risks: it may raise prices for Mexican consumers and businesses that rely on Chinese components, and it could draw retaliatory responses from trading partners.

Bottom line: The proposal is as much about diplomacy with Washington as it is about trade policy — aimed at securing concessions from the U.S. while signalling Mexico’s intent to protect domestic industry amid difficult environmental conditions.

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