Trade Trends News

Mexico Plans to Implement New Tariff Bill Targeting Imports from Multiple Countries to Protect Domestic Industries and Balance Trade

     The Mexican Congress recently passed a tariff bill with significant implications, planning to impose tariffs of up to 50% on imported goods from China and several other Asian countries starting next year. This move aims to strengthen the competitiveness of the domestic manufacturing sector and address long-standing trade imbalances.

      According to reports from Bloomberg and Reuters, the bill was passed by both houses of the Mexican Congress on December 10. In the Senate vote, it was approved with 76 votes in favor, 5 against, and 35 abstentions. The Chamber of Deputies had earlier passed the resolution with 281 votes in favor, 24 against, and 149 abstentions. The bill primarily targets Asian economies that do not have free trade agreements with Mexico, including China, India, South Korea, Thailand, and Indonesia.

      The new tariff policy covers multiple key industrial and consumer product categories, including automobiles and auto parts, textiles, apparel, plastic products, and steel products, among others. The tariff rates for most of these goods are set at around 35%, with certain categories potentially facing higher levies.

      This legislative action stems from a proposal submitted by the new administration led by Mexican President Claudia Sheinbaum in September of this year. However, during the legislative process, economic and trade consultations with relevant Asian countries, concerns from Mexico's domestic private sector, and opposition from some lawmakers once slowed the bill's progress. After multiple reviews and revisions by the Ministry of Finance and the Ministry of Economy, the original proposal underwent over 750 amendments. The final version exempts more than 300 of the approximately 1,400 products initially listed.

      Despite these adjustments, the revised tariff list still covers a wide range of goods, from daily consumer products such as clothing and footwear, to industrial raw materials like steel and aluminum, as well as intermediate products such as auto parts, all of which may be affected by the new tariffs. The Mexican Ministry of Finance estimates that this policy will generate approximately 51.9 billion pesos in additional import tax revenue for the country in 2026, representing an increase of about 8.3% compared to related revenues in 2024.

      Analysis suggests that this measure reflects Mexico's policy direction to further protect local industrial chains and attract manufacturing investment amid the trend of "nearshoring." However, it may also increase production costs in related industries and pose new challenges to Mexico's economic and trade relations with major Asian trading partners.

      International trade practitioners and related enterprises are advised to closely monitor the implementation details and effective timeline of this bill, carefully assess its potential long-term impact on supply chain configuration and cost structures, and actively utilize countermeasures within the framework of trade rules.