Mexico plans to raise tariffs on Chinese cars to 50%—up from 20%—as part of a sweeping overhaul of import duties covering $52 billion worth of goods. The government says the measures, which also apply to steel, textiles, toys and motorcycles, will protect 325,000 jobs and keep out vehicles sold below “reference prices.” Economy Minister Marcelo Ebrard said the levies, set at the maximum allowed under WTO rules, are needed for Mexico to remain competitive.

The plan, which still requires congressional approval, will target imports from countries without trade deals with Mexico, including China, South Korea, India, Indonesia, Russia, Thailand and Turkey. Analysts view the move as a response to U.S. pressure to limit China’s foothold in Latin America. China condemned the step as protectionist and warned it would defend its trade interests.