Mexico Approves Tariff Package up to 50% Targeting Imports Including China
Mexico has approved a tariff package imposing duties of up to 50% on more than 1,400 products, effective from 1 January 2026. The tariffs target imports such as metals, cars, clothing, and appliances and apply to dozens of countries without a free-trade agreement with Mexico, including China, Thailand, India, and Indonesia.
President Claudia Sheinbaum announced the measures are intended to boost domestic production. However, China's commerce ministry stated that the tariffs would substantially harm its interests and urged Mexico to reverse the decision.
The United States, Mexico's largest trading partner, has threatened tariffs on Mexico, including a 50% tariff on steel and aluminum and a proposed 5% tariff on other goods. Mexico is currently engaged in talks with Washington to reduce these pressures.
China is seeking deeper trade and innovation ties with Latin America and the Caribbean, with Chinese brands such as BYD and MG expanding in Mexico. Washington has suggested that Beijing may be using Mexico to bypass U.S. tariffs amid broader trade-policy tensions.
An ongoing investigation into Mexico's trade policy is also underway.
