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Up to 50% tariffs! Mexico announces plans to impose tariffs on about 1,400 product categories from China
Release time:
2025-09-11 16:09
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On September 10, 2025, the Mexican government proposed new tariffs on imports from countries without trade agreements (such as China, South Korea, India, etc.) covering approximately 1,400 types of key imported goods to protect jobs and boost domestic industries.
This initiative is related to Mexico's 2026 budget proposal, suggesting tariffs on various goods ranging from 10% to 50%, including products in the automotive and parts, textiles, plastics, steel, clothing, toys, footwear, furniture, paper, and glass industries, totaling about 52 billion USD.
The new tariffs will apply to imported goods under 1,371 tariff codes, accounting for 16.8% of all tariff codes in Mexico.
Tariffs of 10%, 20%, 25%, 30%, 35%, and 50% are proposed. The tariffs are expected to be implemented before December 31, 2026, with possible extensions.
If approved, the following goods will see increased tariffs:
Light vehicles will be raised from the current 20% to 50%. Chinese cars already hold an 18.1% market share in Mexico.
Auto parts including engine components, transmissions, chassis, etc., with rates ranging from 10% to 50%, depending on the part type.
Motorcycles will have a tariff set at 35%.
Steel products ： such as steel bars, pipes, and rolled steel, will have a 35% tariff.
Toys ： various toy products will be taxed at 35%.
Aluminum products ： including aluminum sheets and alloys, with unspecified exact rates between 10% and 50%.
Footwear ： various types of shoes, with unspecified exact rates between 10% and 50%.
Textiles and fabrics ： such as cloth and bedding, with unspecified exact rates between 10% and 50%.
Bathroom products ： bathroom fixtures like sinks and toilet parts, with unspecified exact rates between 10% and 50%.
Personal care products ： shampoos and other personal hygiene items, with unspecified exact rates between 10% and 50%.
Water pumps and fans ： mechanical equipment like pumps and fans, with unspecified exact rates between 10% and 50%.
Although this proposal still requires congressional approval, it is highly likely to pass given the ruling party's majority in Congress.
What is the impact?
The Mexican Ministry of Economy stated in a document that the tariffs will affect countries without trade agreements with Mexico, especially China , South Korea, India, Indonesia, Russia, Thailand, and Turkey.
Currently, Mexico has signed trade agreements with over 50 countries, including the United States, Canada, the European Union, and Japan; among countries without agreements, China is the largest exporter.
The document also states that the plan will affect 8.6% of import volume, and will "protect 325,000 industrial and manufacturing jobs at risk."
Mexican Economy Minister Marcelo Ebrard said: "These goods already have tariffs; our approach is to raise them to the maximum allowed by the World Trade Organization." Earlier this year, Ebrard opposed tariff measures, saying tariffs are detrimental to economic growth and inflation control.
Analysts say Mexico's move is partly in response to pressure from the United States. Bloomberg reported at the end of August that the Trump administration has been urging Mexico since early this year to follow the U.S. example and raise tariffs on Chinese imports.
Mexican Finance Minister Edgar Amador also acknowledged that this move is closely related to ongoing and future trade negotiations among Mexico, the U.S., and Canada.
John Price, Managing Director of Americas Market Intelligence, said Mexico exports a large number of cars to the U.S. and is trying to protect its own economy while responding to U.S. pressure.
Gabriela Siller, Chief Economist at Mexican financial group Banco Base, also stated on social media, "There are two purposes for imposing tariffs on countries without trade agreements with Mexico. First, to increase revenue; second, to present a good image in front of U.S. President Trump."
Siller also pointed out that Chinese cars will be the most severely impacted import product by these tariffs. The 50% rate is much higher than the current 15% to 20%.
Data from the China Passenger Car Association shows that Mexico has replaced Russia as the largest export market for Chinese cars. In the first half of this year, China's car exports to Mexico increased nearly 25% compared to the same period last year.
Data also shows, China is Mexico's second largest global trading partner (after the United States), and Mexico is China's second largest trading partner in Latin America.
In 2024, the total trade volume between China and Mexico reached 109.426 billion USD, with Chinese exports amounting to 90.232 billion USD and imports at 19.195 billion USD. China mainly exports electronic components, kitchenware, motor vehicle parts, etc. to Mexico, while importing crude oil, electrical equipment, medical instruments, and other products from Mexico.