World Business Report Mexico to impose 50 percent tariffs on Chinese cars
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Sep 11, 2025 Mexico is set to impose a hefty 50 percent tariff on Chinese vehicles, aiming to boost local production and navigate complex trade relationships. A former trade official weighs in on President Sheinbaum's strategic move, raising questions about impacts on businesses and consumers. Meanwhile, an immigration raid at a Hyundai plant in Georgia stirs tensions between the U.S. and South Korea. Plus, excitement builds for Universal's first European theme park, promising significant economic benefits and unique attractions.
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Tariffs Aim To Spur Domestic Production
- Mexico will raise tariffs on Chinese cars from 20% to 50% and extend levies to textiles and steel to boost domestic production.
- Juan Carlos Baker says the move combines political alignment with the US, industrial protection and revenue needs for the 2026 budget.
Multiple Motives Behind Mexico's Move
- The tariff decision serves multiple goals: improve US relations, protect domestic industries, and raise tax revenue for the 2026 budget.
- Baker warns these objectives converge, so the policy is as much fiscal and political as industrial.
Plan Mexico Targets Reshoring And Regions
- Plan Mexico targets reshoring production and incentivising investment in poorer regions to offset supply-chain volatility and foreign tariffs.
- Baker cautions tariffs alone may not attract investment without land, water and utilities.