FX.co ★ Mexico to Levy 50% Tariffs on Chinese Cars

Mexico is set to introduce tariffs of up to 50% on cars and various products manufactured by China and several other Asian exporters. This strategic move aims to strengthen the domestic industry and align more closely with U.S. protectionist measures as President Claudia Sheinbaum readies for discussions regarding North America's free trade agreement. The proposed legislation, linked to the 2026 federal budget, targets over 1,400 product categories, valued at approximately USD 52 billion. This includes vehicles, auto parts, steel, textiles, toys, appliances, and footwear.

Economy Minister Marcelo Ebrard stated that the increased tariffs would apply specifically to imports from countries lacking trade agreements with Mexico, chiefly focusing on China, South Korea, and India. Ebrard emphasized that the intent is to safeguard Mexican industry. "These products already had an existing tariff...our plan is to raise it to the maximum level allowed by the World Trade Organization," he clarified. Currently, China is a significant supplier of vehicles to Mexico, contributing to about 20% of new vehicle sales.