Mexico has imposed steep tariffs ranging between 156% and 210.44% on sugar imports, in an effort to protect domestic production and restore conditions of fair competition.

The new import duties are effective Tuesday and will apply to products coming from World Trade Organization (WTO) member countries that do not have standing trade agreements with Mexico.

According to a decree published Monday in the Official Gazette (DOF), a 210.44% tariff will be placed on refined liquid sugar and invert sugar. Other forms of sugar, such as beet and cane sugars, will see new tariffs of 156%.

“In response to falling international prices and oversupply, and in accordance with our country’s international commitments, sugar import tariffs have been updated to protect jobs, strengthen production and the domestic market and ensure the stability of thousands of families who depend on this strategic sector,” the Ministry of Agriculture and Rural Development (Sader) wrote in a post on X.

During the 2024-2025 sugar cycle (October-September), domestic sugar consumption was estimated at 3.9 million tonnes, while production reached 4.7 million tonnes. Added to this are inventories of 1.4 million tonnes, for a total supply of 6.1 million, forcing Mexico to sell its surplus in international markets at very low prices.

“The federal government has the obligation to implement the necessary mechanisms to create stability in national industrial sectors and eliminate distortions in international trade,” the decree says.  

The Mexican sugar industry is essential for the country’s economic and social development. According to official data, it generates over 440,000 direct jobs and benefits more than 15 million people across 267 municipalities in 15 states. 

The sugarcane production chain — which includes everything from planting to marketing — serves as a vital source of income in rural areas, where few economic activities are as stable or profitable. Furthermore, estimates suggest that the sugar industry indirectly generates over 2.2 million jobs in agricultural sectors, transportation, distribution and associated small businesses.

Next year, the federal government also plans to increase the tax on sugary beverages to 3.08 pesos per liter – a significant increase from this year’s 1.64 pesos. With this increase, Mexico expects to collect approximately 41 billion pesos (US $2.2 billion) in 2026, which the government says will be allocated entirely to the Health Ministry’s budget.

With reports from La Jornada and El País