The Mexican government has approved sweeping tariff hikes on goods from countries without trade deals, including China and India, as it navigates pressure from the United States.
Mexico’s Senate just gave final approval to a controversial bill that slaps tariffs of up to 50% on imports from several Asian countries. It’s a major shift in Mexico’s trade policy. The legislation targets countries that don’t have free trade agreements with Mexico, and officials say it’s meant to protect domestic industries from unfair competition and bring Mexico closer to its North American partners.
The new measures will hit more than 1,400 product categories, including steel, aluminum, textiles, footwear, and plastics. Most goods will face duties up to 35%, but certain items like Chinese electric vehicles could get slammed with the full 50% rate. The tariffs kick in starting January 2026.
This policy mainly affects imports from China, India, South Korea, Thailand, and Indonesia. Mexico is trying to tackle a growing trade deficit with Asian economies, especially China, which runs a $71 billion surplus with Mexico. There’s also concern about “transshipment,” where goods supposedly get routed through Mexico to dodge US tariffs.
President Claudia Sheinbaum’s administration is defending the bill as necessary to strengthen local supply chains. “These adjustments will boost Mexican products in global supply chains and protect jobs in key sectors,” said Senator Emmanuel Reyes from the ruling Morena party.
“This is not merely a revenue-raising tool, but rather a means of guiding economic and trade policy in the interest of general welfare,” Reyes said during the debate.
But analysts see something else going on here. “The move aligns Mexico more closely with US President Donald Trump,” Mint reported, suggesting this is really a strategic play to keep Washington happy ahead of the upcoming review of the United States-Mexico-Canada Agreement (USMCA).
This decision comes after months of pressure from the US. President-elect Donald Trump has threatened blanket 25% tariffs on Mexican goods unless Mexico cracks down on illegal migration and drug trafficking. By putting up barriers to Asian imports, Mexico seems to be trying to protect itself from US protectionism by showing it’s not letting Chinese goods slip through the backdoor.
But not everyone in Mexico is happy about this. Business groups are warning the policy could drive up consumer prices and mess up manufacturing supply chains that depend on affordable Asian components.
Now that both houses of Congress have passed the bill, everyone’s watching how it gets rolled out in 2026. The Mexican government estimates the new duties could bring in an extra $3.76 billion next year. The downside? This could trigger retaliatory moves from countries like China and India, potentially sparking a bigger trade fight across the Global South.
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