Mexico will raise tariffs on cars imported from China and other Asian nations to 50 per cent, in a sweeping revision of trade duties aimed at shielding domestic jobs and appeasing Washington, reported Reuters.

The Economy Ministry said the new tariffs will apply across multiple sectors including steel, textiles and automotive, affecting US$52 billion worth of imports. The overhaul is part of a broader strategy to strengthen Mexico's industrial base.

Economy Minister Marcelo Ebrard said Chinese cars currently face a 20 per cent tariff, but the government will raise this to the maximum permitted under international trade rules. "Without a certain level of protection, you almost can't compete," he told reporters.

Mr Ebrard added that the measures comply with World Trade Organization limits and are designed to counter the influx of Chinese vehicles priced below reference levels. He said the move was necessary to safeguard employment and ensure fair competition in Mexico's market.