MEXICO CITY (Reuters) -Mexico will raise its tariffs on automobiles from China and other Asian countries to 50%, from a prior level of 20%, Economy Minister Marcelo Ebrard said on Wednesday.
“They already have tariffs,” Ebrard told reporters when asked about the import levies on China. “What we will do is raise them to the maximum level allowed.”
“Without a certain level of protection, you almost can’t compete,” he added.
Ebrard said the measure, which comes just within limits imposed by the World Trade Organization, was intended to protect jobs in Mexico as Chinese cars were entering the local market “below what we call reference prices.”
The light vehicles and auto parts sectors were particularly impacted by lower Chinese prices, he said.
The move comes as the United States pushes countries in Latin America to limit their economic ties with China, with which it competes for influence in the region.
Ebrard had earlier this year spoken against tariff measures, saying they were at odds with economic growth and keeping inflation down.
(Reporting by Ana Isabel Martinez, Adriana Barrera and Brendan O’Boyle; Writing by Sarah Morland; Editing by Brendan O’Boyle)
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