Mexico's Senate Approves Tariffs Up to 50% on Over 1,400 Products Including Imports from China
Mexico's Senate has approved tariffs of up to 50% on more than 1,400 products, many of which are imported from China. These tariffs will take effect on 1 January 2026 and cover a range of items including metals, cars, clothing, and appliances. The tariffs will also impact dozens of non-FTA countries such as Thailand, India, and Indonesia.
This measure is intended to boost domestic production and has the support of President Claudia Sheinbaum. The introduction of these tariffs comes amid ongoing negotiations with the United States concerning steep import taxes proposed by then-President Donald Trump. Trump's proposals included 50% duties on Mexican steel and aluminium, a potential new 5% tariff on Mexico, a 25% levy aimed at curbing fentanyl imports, and disputes over a long-standing Rio Grande water treaty.
China's commerce ministry responded by stating that the levies would substantially harm China and has urged Mexico to reconsider the decision. Meanwhile, China has been expanding trade relations with Latin American and Caribbean countries, with companies such as BYD and MG operating in Mexico.
The US, Mexico's largest trading partner, suspects that Beijing may be using Mexico to circumvent US tariffs.
