Mexican lawmakers have approved a package of new tariffs of up to 50% on more than 1,400 products, many of which come from China, reports BBC News.

President Claudia Sheinbaum said on December 10 that the duties, which will come into effect January 1, are needed to boost domestic production. They do not yet apply to the U.S., Mexico’s largest trading partner, and many products fall under the extant USMCA free-trade agreement, which is due to be renegotiated in 2026.

The tariffs from countries that do not have a free trade agreement with Mexico, such as Thailand, India and Indonesia, will apply to goods like metals, cars, clothing and appliances. In 2024, 42% of Mexico's imports came from the U.S., and 21% from China, with South Korea, Germany and Japan the only other countries to top 3%, according to Trading Economics.

Beijing's commerce ministry  said on December 11 that the levies will "substantially harm the interests of trading partners, including China," and urged Mexico to “correct” its position.

An investigation into Mexico's trade policy is in progress, they added, urging the country to "correct" its decision.

BBC reports that Chinese companies have been expanding their footprint in Mexico in recent years, with car brands like BYD and MG establishing operations in the country. But Washington has said Beijing may be using Mexico as a way to bypass U.S. tariffs.

Mexico is in negotiations with the U.S. over steep import taxes that President Donald Trump has threatened to impose on the country, including 50% duties on Mexican steel and aluminum. Trump has also threatened a 25% levy related to the flow of fentanyl into America, and a new 5% tariff on Mexico, accusing it of violating an agreement that gives American farmers access to water. 

Mexico’s freshly approved range of tariffs on other trading partners could be interpreted as a signal to the U.S. that it is sympathetic to the U.S.’s stance on trade.