The backlash against a China trade shock 2.0 is picking up steam.

Mexican lawmakers gave final approval for new tariffs on Asian imports, broadly aligning with US efforts to tighten trade barriers against China, as President Claudia Sheinbaum seeks to protect local industry.

Mexico’s Senate voted Wednesday in favor of a bill that imposes tariffs of 5% to 50% on more than 1,400 products from Asian nations that don’t have a trade deal with Mexico. The levies will take effect next year and hit a wide range of products from clothing to metals and auto parts, with the massive output of Chinese factories emerging as the legislation’s focus.

Sheinbaum’s tariff pursuits track with Washington’s concerns regarding the so-called transshipment of Chinese exports through other countries, and follow action by Canada last year to also emulate US levies on electric cars, steel and aluminum from China.

Wendy Cutler, senior vice president at the Asia Society Policy Institute in Washington, noted in a LinkedIn post on Thursday that Mexico’s tariffs also will affect India, South Korea and Indonesia. She said “unified third-country tariff hikes on key products” could be part of the review next year of the USMCA. “Mexico’s announcement may just be the first step,” she wrote.

Read the article.