Mexico has approved new tariffs of up to 50% on hundreds of imported products, many of which originate from China. The legislation, passed by the Mexican Senate, aims to support domestic manufacturing and strengthen local industries, according to President Claudia Sheinbaum.
These tariffs, effective from 1 January 2026, will target goods such as metals, cars, clothing, and household appliances. Dozens of countries without free trade agreements with Mexico—including Thailand, India, and Indonesia—will also be affected.
The policy is expected to impact over 1,400 products. Beijing has expressed concern, stating that the measures could “substantially harm the interests of trading partners, including China.” China is currently investigating Mexico’s trade policy and has urged the government to reconsider the decision.
This move comes amid Mexico’s ongoing negotiations with the United States. Washington has threatened steep import taxes on Mexican goods, including 50% tariffs on steel and aluminum, and a 5% levy in response to alleged treaty violations related to water access from Rio Grande tributaries. President Donald Trump has also highlighted concerns over fentanyl flow into the US as a potential reason for additional tariffs.
China has been expanding its trade and investment presence in Mexico in recent years. Companies such as BYD and MG have established operations, strengthening bilateral economic ties. The US, however, has raised concerns that Mexico may serve as a gateway for Chinese products to bypass American tariffs.
Despite tensions, Mexico continues talks with Washington to ease potential tariffs while pursuing domestic economic growth. The new tariffs mark a significant shift in Mexico’s trade policy and signal the country’s commitment to protecting local industries while balancing international relations.
