Mexico is analyzing a range of responses to a proposed U.S. electric vehicle tax credit and would even consider applying tariffs, Mexican Economy Minister Tatiana Clouthier said on Thursday.
"In the past we have imposed tariffs and we would have to do or propose something very important and strategic for those products, in those places where it hurts them...so that the consequences can be felt," Clouthier told a news conference.
Clouthier said this was "not a desirable" course of action, but underscored that Mexico would do everything in its power to safeguard its automotive industry, which employs around 1 million people directly.
The U.S. Congress is considering a new $12,500 tax credit that would include $4,500 for union-made U.S. electric vehicles. Only U.S. built vehicles would be eligible for the $12,500 credit after 2027, under a House proposal.
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