MEXICO CITY: Mexico’s Senate has voted to impose steep import duties—ranging from 5% to 50%—on a wide range of products from India, China, and several other Asian and non–free trade agreement countries, a move aimed at bolstering domestic industry and curbing dependence on cheaper foreign goods.
According to prominent Mexican outlets including El Universal and El Financiero, the upper house on Wednesday approved amendments to the country’s General Import and Export Tax Law, revising tariff classifications for around 1,400 product categories. The bill passed with 76 votes in favour, 5 against, and 35 abstentions.
Wide Range of Goods Targeted
The new tariff structure—effective from 2026—covers a broad spectrum of consumer and industrial goods. These include:
- Auto parts and light vehicles
- Textiles, clothing, toys, and footwear
- Household appliances and furniture
- Plastics, steel, aluminium, glass
- Motorcycles, trailers, leather goods, paper and cardboard
- Perfumes, soaps, and cosmetics
Lawmakers behind the measure said these sectors have struggled to compete with low-cost imports, especially from China.
Political Debate in the Senate
The bill triggered debate among parties. Marko Cortés of the National Action Party criticised the speed at which the legislation advanced, alleging that senators from Morena and its allied parties approved the measure without thoroughly reviewing it.
Another lawmaker, Cristina Ruiz of the PRI, warned of the “social impact” of higher tariffs, noting that many of the targeted items—such as clothing, appliances, and furniture—are basic necessities for Mexican households.
Economic and Geopolitical Motivation
Analysts cited by El Financiero suggested the tariff hike may also be an attempt to align more closely with U.S. expectations ahead of the 2026 United States–Mexico–Canada Agreement (USMCA) review, amid growing U.S. pressure to counter China’s expanding trade footprint in North America.
A report in Mexico News Daily said the Mexican government expects the revised duties to generate up to 70 billion pesos (USD 3.8 billion) annually. Officials argue that the move will protect domestic manufacturing and support job creation.
“We believe supporting Mexican industry means creating employment,” said Deputy Ricardo Monreal, Morena’s leader in the Chamber of Deputies.
China Responds
China reacted sharply to Mexico’s decision. The Chinese Commerce Ministry said Beijing “firmly opposes unilateral tariff hikes” and urged Mexico to reverse what it described as protectionist measures. State media reported that China would monitor the enforcement of the new tariffs and assess their impact, noting that even after revisions, the duties could significantly harm Chinese trade interests.
Countries Affected
In addition to India and China, the tariff hikes will apply to imports from South Korea, Thailand, Indonesia, Brazil, South Africa, and the UAE, among others—primarily countries lacking free trade agreements with Mexico.
With implementation still months away, businesses and trade partners are closely watching how the new tariff regime will shape Mexico’s manufacturing landscape and its international economic relations.
