Mexico approves tariff hikes on imports from China, and other Asian countries
Date of publication: December 15, 2025
On December 10, 2025, Mexico’s Senate voted to impose tariff hikes of up to 50% on a wide range of imports from India, China, and several other Asian economies. The Senate passed the bill with 76 votes in favor, five against and 35 abstentions. The bill has now cleared both chambers of Congress.
The new tariffs will take effect January 1, 2026.
Approved earlier by the lower house, the measure introduces new or higher duties on goods from countries without trade agreements with Mexico, including China, India, South Korea, Vietnam, Thailand, and Indonesia.
Background
The Mexican government says the main reasons for the tariffs are to protect local industries and support economic policies. President Claudia Sheinbaum’s team believes raising tariffs will help keep domestic manufacturing and jobs safe from too much competition from imports, especially in areas like autos, textiles, steel, plastics, footwear, and other goods. Officials also say the tariffs help fix unfair trade practices and lower reliance on imports, giving Mexican companies a fairer chance against goods from Asia.
The new tariffs will also increase revenue, which can assist with addressing fiscal shortfalls and current budget constraints.
Mexico's recent tariff decisions may also reflect a geopolitical consideration. As the United States is Mexico’s largest trading partner, these actions align with ongoing U.S. efforts to encourage Latin American countries to limit expanded economic engagement with China. Some analysts suggest that Mexico’s approach is partially intended to maintain positive relations with the U.S. ahead of the upcoming review of the United States-Mexico-Canada Agreement (USMCA), as well as to address escalating trade tensions and the possibility of additional U.S. tariffs. The United States has already imposed 25% tariffs on certain Mexican imports, and there have been further threats of increased tariffs from the Trump administration for several reasons.
Mexico’s policy may be strategically designed to respond to concerns raised by President Trump regarding the flow of Asian goods into the United States, particularly those he believes are being routed through Mexico. China has significantly expanded its manufacturing presence in Mexico, serving as a channel for goods entering the U.S. market. However, President Trump asserts that China is utilizing Mexico as an intermediary for trans-shipment of products originating in China.
The new tariffs
Under this bill Mexico will impose steep import tariffs - ranging from about 5 percent to as high as 50 percent on a wide range of goods from countries that do not have free trade agreements with Mexico.
Under the new rule, from 2026, certain products — such as autos, auto parts, textiles, clothing, plastics, and steel — will face tariffs of up to 50%, while most others will see rates capped at 35%. Some examples are as follows:
- Passenger vehicles face a tariff increase from 20 percent to 35 percent,
- Motorcycles see duties increase from 20 percent to 35 percent.
- Smartphones previously entered the country duty-free and now face a 35 per cent tariff,
- Industrial machinery will see duties rise from 5-10 percent to 25-35 percent.
- Aluminum exports face duties increasing from 5-10 percent to 25-35 percent,
- Articles of iron or steel see duties jump from 15 percent to 35 percent.
- Coffee, tea, mate, and spices face tariffs rising from 0-5 percent to 15 percent.
- Garments face tariffs rising from 20-25 percent to 35 percent.
Here you can find a copy of the Draft Decree.
Conclusion
Mexico maintains a considerable trade deficit with China, importing substantially more from China than it exports. Key imported goods include electronics, industrial machinery, automobiles, and automotive parts.
In response to the recent tariff package, China issued a strong statement characterizing Mexico’s actions as unilateralist and protectionist practices that may substantially harm the interests of trading partners such as China.
Companies importing into Mexico should check the affected HTS codes to assess supply chain costs and decide if sourcing changes are necessary.
For more information on how ONESOURCE Global Trade solutions can assist you in managing supply chain risk and regulatory compliance as we move into 2026, contact your Account Manager or Client Success Manager.