Mexico is going into 2026 with a new tariff regime, as higher import levies on China and several other countries come into effect on Thursday. The move raises duties up to 35% on a broad range of goods – mainly from China, India, South Korea, Thailand and Indonesia – as part of an effort to protect domestic industries, according to Mexican officials.
Approved by the Mexican Congress earlier this month, the tariffs cover more than 1,460 product lines, including automobiles and parts, textiles, clothing, plastics, steel, furniture, leather goods, paper products, glass and motorcycles.
“This tariff modification primarily aims to safeguard nearly 350,000 jobs in sensitive sectors like footwear, textiles, apparel, steel and automotives, while contributing to sovereign, sustainable and inclusive reindustrialisation,” Mexico’s economy ministry said in a statement.
Trade between China and Mexico has grown rapidly over the past decade, with China exporting more than US$90bn worth of goods to Mexico in 2024, compared to almost US$34bn in 2015, according to the UN Comtrade Database.
But recently Mexico has been facing accusations of serving as a “backdoor” for Chinese goods looking to avoid sweeping US tariffs by entering North America through Mexico under the United States-Mexico-Canada Agreement (USMCA). Since US President Donald Trump’s first term, Mexico’s trade deficit with China has widened to record levels, while foreign direct investment from Chinese automakers has also grown as Chinese companies expand their footprint in Mexico.
Although many analysts view Mexico’s new tariffs as a strategic bid to appease Washington ahead of the upcoming review of USMCA in July 2026, Mexican authorities say the duties are not targeted at any one nation.
The move is expected to generate an estimated US$3.76bn in additional revenue next year, a boost that could help reduce Mexico’s fiscal deficit.
Beijing has strongly condemned the policy as “misguided”, with Chinese officials urging Mexico to reconsider what they call unilateral and protectionist measures. Industry groups in Mexico have also voiced concerns, warning that higher import costs could squeeze supply chains and raise prices for consumers.