Mexico will raise import taxes on more than 1,400 products from China and other Asian countries to as high as 50%, the government announced, saying the move is designed to bolster domestic production and help absorb the effects of U.S. tariffs on Mexican goods.
President Claudia Sheinbaum said the measures, disclosed in her administration’s annual budget proposal, target goods including light vehicles, auto parts, textiles, shoes, plastics, electronics, toys and other items. Economy Secretary Marcelo Ebrard said the higher duties would affect about 8.6% of Mexico’s imports and would be applied only to countries that do not have a free trade agreement with Mexico.
Ebrard said the listed products already carried an average tariff of roughly 16%, and that Mexico would raise rates to the maximum allowed under international agreements. China will be most affected; Mexico imported about $130 billion in goods from China in 2024, second only to its purchases from the United States. Other countries named as likely to be hit include South Korea, Thailand, India, the Philippines and Indonesia.
The announcement comes as Mexico seeks relief from U.S. tariffs that have targeted some Mexican exports, most notably a 25% tariff on a portion of the automotive sector and higher duties on steel and aluminum. The automotive sector accounts for about 23% of Mexico’s manufacturing output. Officials and analysts said the new Mexican tariffs could be intended to strengthen Mexico’s bargaining position with Washington as the three countries prepare for a revision of their free-trade agreement.
"What Mexico is looking for right now are reductions or exemptions to the tariffs they’re paying (to the U.S.)," said Oscar Ocampo, a researcher at the Mexican Institute for Competitiveness. He said the Mexican measures were being framed as consistent with international trade rules and could be used as leverage in negotiations, but cautioned it was unclear how effective the tactic would be.
Sheinbaum, who met last week in Mexico City with U.S. Senator Marco Rubio, said the measures were aimed at encouraging domestic production and were not the result of pressure from Washington. Her administration has argued that some imported products, including certain cars, are being sold at prices below market rates.
A spokesman for the Chinese government, Guo Jiakun, criticized reports of the planned Mexican tariffs, saying China "firmly opposes restrictions imposed on China under various pretexts and under coercion from others, which harm China’s legitimate rights and interests." The Mexican government has said it will apply the increases only where permitted by international agreements and only to partners without existing trade accords with Mexico.
The tariff changes were included in the budget proposal that is expected to pass easily in Mexico’s Congress, where the governing party holds majorities in both chambers. The government says the revenues and industrial protections are intended to support domestic manufacturers and preserve jobs. Business groups and trading partners have not yet issued comprehensive reactions to the formal budget submission, and both diplomatic and trade discussions are likely to follow as Mexico moves to implement the new duties.