Mexico is set to significantly increase tariffs on selected imported goods from countries that do not have a free trade agreement with it, aligning closely with the recent U.S. approach to trade protection. The Senate has approved proposals to raise duties by up to 50% on nearly 1,400 products originating from countries including China and India, with the new rates scheduled to take effect on January 1.
The tariff hikes will apply to automobiles, auto components, textiles, clothing, plastics, steel and other goods imported from China, India, South Korea, Thailand, Indonesia and several other Asian nations. Mexico’s finance ministry first introduced the proposal in September, but it failed to gain legislative backing at the time, despite the ruling Morena party holding a majority.
President Claudia Sheinbaum welcomed the approval, stating that the measures aim to strengthen domestic manufacturing and address Mexico’s trade imbalance with China. The timing has drawn attention, as the move comes ahead of the next review of the US-Mexico-Canada Agreement (USMCA). Analysts note that the action may also be intended to reassure the United States, which has long accused China of using Mexico as a backdoor route into the U.S. market.