Mexico Congress approves tariffs on China imports; analysts point to US pressure

• Mexico's Congress approved tariff hikes on over 1,400 products from China and other non-free trade agreement countries.
• The tariffs, up to 50%, will affect goods like textiles, shoes, appliances, cars, and auto parts, starting in January.
• President Sheinbaum's government stated the tariffs aim to spur domestic production, but analysts suggest the real motivation is ongoing US trade negotiations.
• China will be most affected, as Mexico imported $130 billion worth of products from the country in 2024.
• Analysts warn the tariffs could disrupt supply chains, increase inflation, and negatively impact various Mexican sectors.

Why It Matters: Mexico's new tariffs will disrupt trade, raise costs, and affect US-Mexico relations.