The Mexican government on Wednesday approved a sweeping package of new import tariffs — some as high as 50% — on more than 1,400 products from China and other Asian nations.
The tariffs are a dramatic shift in trade policy that analysts say is designed to shore up domestic industry while easing pressure from the U.S. ahead of contentious negotiations with the Trump administration.
The tariffs, which take effect Jan. 1, will apply to goods including autos, auto parts, steel, aluminum, plastics, clothing, appliances, toys, footwear and textiles.
The measures target countries that lack a free trade agreement with Mexico, including China, South Korea, India, Thailand and Indonesia. Together, the affected product categories represent approximately $52 billion in annual imports, or 8% to 9% of Mexico’s total inbound trade.
Most tariff lines will see rates of up to 35%, while select products — such as certain steel items, textiles, cosmetics, auto parts and specialty vehicles — will reach the maximum 50% threshold.
Related: Trump threatens 5% tariff on Mexico over disputed water deliveries
China pushes back, warns move is “harmful” and urges reversal
China reacted sharply to the tariff package, warning that Mexico’s decision constitutes “unilateralist and protectionist practices” and will “substantially harm the interests of trading partners like China,” according to El Financiero.
A Chinese foreign ministry spokesperson said pursuing protectionism “does not benefit oneself,” urging Mexico to maintain dialogue and protect the bilateral relationship — one Beijing described as increasingly important amid a “volatile international landscape.”
Mexico runs a significant deficit with China, importing far more from China than it exports to the country, importing electronics, industrial machinery, autos and auto parts.
In the first half of 2025, Mexico’s imports from China reached approximately $62.1 billion, while Mexican exports to China were about $4.6 billion, marking record China-Mexico trade for that period, according to The Mexican Chamber of Commerce in China.
Although Mexican President Claudia Sheinbaum’s administration framed the measure as essential to boosting the country’s industrial competitiveness and protecting more than 320,000 domestic jobs, the timing has fueled perceptions that the tariffs are also meant to calm U.S. concerns about China’s expanding presence in Mexico.
The Trump administration has repeatedly warned that Chinese firms may be using Mexico as a backdoor into North American supply chains, a central issue as the U.S.–Mexico–Canada Agreement (USMCA) approaches its 2026 review.
Analysts cited in a Reuters report said the move “appeases the U.S. ahead of the next USMCA review” and provides Mexico with additional fiscal capacity—around $3.7 billion in new tariff revenue next year — as it seeks to narrow its budget deficit.
The action also comes as Mexico faces a series of trade threats from President Donald Trump, including 50% duties on Mexican steel and aluminum, a proposed 25% fentanyl-related tariff, and Trump’s recent threat of an additional 5% tariff over water-treaty disputes.
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