Under US pressure, Mexico mulling 50pc tariff on Chinese cars

MEXICO CITY, Sept 11 (AFP): Mexico, under pressure not to serve as a back door for Chinese goods entering the United States, has proposed a 50-per cent duty on car imports from the Asian giant-up from 15-20 per cent.

The initiative, contained in a bill submitted by the government to Congress, seeks to assuage US President Donald Trump-who has repeatedly urged trading partners to increase duties on China-while also bolstering Mexico's industrial sector.

The White House has said Chinese producers are abusing a free-trade deal between the United States, Mexico and Canada to send goods northward over the Mexican border tariff-free.

Mexican President Claudia Sheinbaum has also complained of the impact of Chinese imports on domestic manufacturing, and the bill says the increased tariff will seek to protect 19 industrial sectors considered "strategic."

It also proposes raising tariffs on other countries with which Mexico has no trade agreement.