Mexico's planned tariffs could backfire on its economy

Mexico's planned tariff increases could backfire on its own economy, with analysts warning on Friday that the move may drive up costs for domestic industries and dampen foreign investor confidence.

As media reports indicated that Mexico plans to raise import tariffs on about 1,400 items — such as vehicles, toys and steel products — from countries without free trade agreements, including China, they said the move could disrupt supply chains and increase production expenses for Mexican manufacturers reliant on competitively priced inputs.

In a statement released late Thursday, the Ministry of Commerce said China will take necessary measures to firmly safeguard its companies' legitimate rights and interests.