JAKARTA - China urges Mexico to review plans to increase tariffs approved by legislators and have an impact on imports from Beijing as well as a number of other Asian countries, including Indonesia.
The Mexican Senate previously approved a bill that raised fares by 50 percent on Wednesday, December 10.
Reported by ANTARA from Anadolu, Thursday, December 11, the policy, which took effect on January 1, will target more than 1,400 product lines, including cars, vehicle spare parts, textiles, clothing, steel, plastic, footwear, and household appliances.
The increase in tariffs will have an impact on countries that do not have a free trade agreement with Mexico, such as China, Thailand, India, South Korea, and Indonesia.
Amid pressure from the United States and heating up trade relations between the two sides, Mexican President Claudia Sheinbaum defended the policy by stating the move was taken to support domestic production.
China's Ministry of Trade called the tariff increase a unilateral and protective measure, calling on Mexico to reconsider the policy.
Beijing insists it rejects any form of tariff increases unilaterally.
The ministry also states that China views the importance of economic and trade relations with Mexico. In a complex international situation and increasing protectionism, China hopes Mexico can work together to strengthen communication, manage differences, and maintain the stability of trade relations.
To protect China's industrial interests, the Beijing government at the end of September began investigating trade and investment barriers against Mexico. The investigation is currently ongoing.
Based on data from the World Trade Organization (WTO) sourced from the United Nations, Mexico's imports from China last year reached 129.79 billion US dollars (approximately IDR 2.1 quadrillion), while Mexico's exports to China amounted to 9.08 billion US dollars (IDR 151.3 trillion). The total bilateral trade volume of the two countries is around 138.87 billion US dollars (approximately IDR 2.3 trillion).
The tariff-boosting decision came after US PresidentDonald Trump on December 8 threatened to impose a five percent tariff on Mexico's exports through a statement on his social media platform, Truth Social.
Trump alluded to the dispute over the distribution of water under the 1944 agreement and demanded Mexico deliver 200,000 acre-feets of water before the end of the year to address supply shortages in the state of Texas.
The US remains Mexico's main trading partner with an annual trading value of US$334 billion (around Rp5,568 trillion).
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