FX.co ★ Mexico Pauses Tariff Plan Amid Talks with China and Asia

Mexico is currently deferring the ratification of proposed tariff increases on approximately 1,500 products originating from China and other Asian nations. President Claudia Sheinbaum made this announcement as the government engages in discussions and evaluates potential amendments to the proposal. Submitted in September, this proposal seeks to elevate tariffs by up to 50% on products such as automobiles, textiles, plastics, and steel from countries that do not have trade agreements with Mexico. These countries include China, South Korea, India, Indonesia, Russia, Thailand, and Turkey. In response, China has cautioned that it will undertake "necessary measures" to safeguard its "legitimate rights and interests." The administration of President Sheinbaum asserts that the tariffs are designed to protect local industries. However, this initiative also coincides with pressures from the United States on Mexico to diminish its economic linkages with China.