Mexico hikes tariffs on China imports, analysts cite US trade talks

• Mexico's Congress approved tariff hikes on over 1,400 products from countries without free trade agreements, primarily targeting China.
• The tariffs, up to 50% on goods like textiles, cars, and auto parts, are set to begin in January.
• President Claudia Sheinbaum's Morena party supported the measure, stating it aims to spur domestic production.
• Analysts suggest the tariffs are a strategic move linked to Mexico's negotiations with the U.S. regarding existing tariffs and the USMCA free trade agreement review.
• China, Mexico's second-largest import source, will be significantly impacted by the new tariffs.

Why It Matters: Mexico's tariffs will impact trade, supply chains, and consumer prices.