Mexico city: The Mexican Senate has approved a new bill imposing tariffs of up to 50% on imports from China and other Asian nations. The legislation, passed on Wednesday, will go into effect on January 1 and affects over 1,400 product categories, including automobiles, auto parts, textiles, apparel, steel, plastics, footwear, and appliances. The tariffs will impact countries lacking free trade agreements with Mexico, such as China, Thailand, India, South Korea, and Indonesia.

According to Anadolu Agency, the decision has prompted Beijing to urge Mexico to reconsider the measure. China's Commerce Ministry labeled the tariff hikes as "unilateral and protectionist" and emphasized China's opposition to any form of unilateral tariff increases. The ministry expressed the importance of China-Mexico economic and trade relations and hoped for strengthened communication and dialogue to manage differences effectively.

The ministry also revealed that it initiated a trade and investment barrier investigation against Mexico at the end of September to safeguard Chinese industries' interests, which is still ongoing. Meanwhile, World Trade Organization data from the UN shows that Mexico's imports from China amounted to $129.79 billion last year, with exports to China reaching $9.08 billion, resulting in a bilateral trade volume of approximately $138.87 billion.

Mexican President Claudia Sheinbaum defended the tariff hikes, stating they are necessary to support domestic production amid pressure from the United States. This decision follows a recent threat from US President Donald Trump to impose 5% tariffs on Mexican exports due to a water-sharing dispute under the 1944 treaty. The US, which remains Mexico's top trading partner with an annual trade volume of $334 billion, demanded Mexico release 200,000 acre-feet of water by year-end to alleviate shortages in Texas.