Mexico’s Congress will today begin voting on a government proposal to hike tariffs to 50% on Chinese goods, as it seeks to appease a White House that is threatening new trade restrictions.
Mexican President Claudia Sheinbaum hopes the move will lead to a reprieve of US levies on steel and aluminum, while also boosting her country’s standing ahead of next year’s revision of a trilateral trade agreement with the US and Canada.
However, on Monday US President Donald Trump threatened additional tariffs on Mexican goods over a long-running water dispute. Mexico is unlikely to be able to meet Trump’s demands as its farmers and cattle ranchers face a historic drought.
