MEXICO CITY — A proposed U.S. electrical car tax credit score is “discriminatory” and Mexico is analyzing a spread of authorized actions in response which will embody tariffs, Mexican Financial system Minister Tatiana Clouthier mentioned on Thursday.

“Prior to now now we have imposed tariffs and we must do or suggest one thing crucial and strategic for these merchandise, in these locations the place it hurts them … in order that the results might be felt,” Clouthier informed a information convention.

Clouthier mentioned this was “not a fascinating” plan of action, however underscored that Mexico would do all the things in its energy to safeguard its automotive trade, which straight employs round a million folks.

The U.S. Congress is contemplating a new $12,500 tax credit score that would come with $4,500 for union-made U.S. electrical automobiles. Solely U.S. constructed automobiles can be eligible for the $12,500 credit score after 2027, beneath a Home proposal.

Clouthier, who known as the measure “completely opposite to free commerce,” had beforehand rebuked the U.S. for pursuing what she described as protectionist insurance policies that have been liable to backfire and spur immigration.

She made the same argument on Thursday, saying “the impact on our auto exports would have a really giant influence on this sector that creates lots of jobs … and will even generate extra migratory pressures.”

In late October, Mexico, together with the European Union, Germany, Canada, Japan, France, South Korea, Italy and different nations wrote U.S. lawmakers saying the proposed EV tax credit score violates worldwide commerce guidelines.

The proposal has been backed by U.S. President Joe Biden, the UAW and lots of congressional Democrats, however opposed by main worldwide automakers, together with Toyota Motor Corp., Volkswagen Group, Daimler, Honda Motor Co., Hyundai Motor Co. and BMW.