Sweeping tariff increases on imports from China and other countries without free trade agreements (FTAs) with Mexico officially took effect Jan. 1, marking a significant shift in the country’s trade policy aimed at protecting domestic industries and jobs.
The tariff modifications, published in Mexico’s Official Gazette on Dec. 30, affect 1,463 product categories across more than a dozen sectors including automotive, textiles, clothing, steel, plastics, footwear, furniture, toys, aluminum and glass. The new duties range from 5% to 50%, with the highest rates applied to vehicles from China and certain other Asian nations.
According to Mexico’s Economy Ministry, the measure is designed to safeguard approximately 350,000 jobs in sensitive sectors and advance what the government calls “sovereign, sustainable and inclusive reindustrialization.”
The tariffs are also linked to Plan México, President Claudia Sheinbaum’s economic development strategy that aims to increase domestic content in production chains by 15% and generate 1.5 million new jobs.
“This tariff modification constitutes a commercial and economic measure that seeks to benefit the people of Mexico, and is not directed at any particular country,” the Economy Ministry stated in its announcement. The changes impact imports from countries including China, India, South Korea, Thailand, Indonesia, Brazil, South Africa and the United Arab Emirates.
The measure follows Congressional approval of the tariff reform in December, when the Chamber of Deputies voted 281-24 in favor of the bill. The legislation was significantly softened from Sheinbaum’s original September proposal before passage, though the 50% maximum tariff on imported vehicles remained intact.
Chinese cars, including electric vehicles from manufacturers like BYD, have surged in popularity in Mexico in recent years and faced a 20% import duty in 2025. The new 50% tariff represents a substantial increase that Mexican auto industry leaders have welcomed as protection for domestic manufacturers.
The government estimates the tariffs will generate an additional 70 billion pesos ($3.8 billion) in annual revenue.
Critics have warned the tariffs could increase consumer prices and hurt small businesses that rely on imported inputs. The measure also comes as Mexico seeks to strengthen its position ahead of the 2026 review of the USMCA free trade agreement with the United States and Canada, both of which have questioned Mexico’s growing economic ties with China.
Mexico News Daily
This story was written by a Mexico News Daily staff editor with the assistance of Claude, then revised and fact-checked before publication.
