Mexico Imposes Up to 50% Tariffs on Chinese Goods in Trade Crackdown

Mexico goes after China’s tariffs. The Mexican Senate has approved the reform of the General Import and Export Tax Law (Ligie) to impose tariffs of between 5% and 50% on more than 1,400 products from Asian countries that do not have a trade agreement with Mexico, such as South Korea, India, Vietnam, Thailand or China, which has already warned that the measure considerably harms its interests.

The bill, which was approved with 76 votes in favor, five against and 35 abstentions, will allow the imposition of tariffs from January 1, 2026 on 1,463 products, including everything from clothing to metals and auto components. Although Mexico’s president, Claudia Sheinbaum, has rejected any connection between the reform and the protectionist offensive against China promoted by Donald Trump, the measure coincides with the preparations for the negotiations for the revision of the Trade Agreement with the United States and Canada.

Mexico’s Ministry of Finance and Public Credit (SHCP) estimates that the new tariffs will generate close to 52 billion pesos (about $2.85 billion) in additional revenue next year.

Mexico expects additional revenues of $2.85 billion as a result of the tariffs

China’s Ministry of Commerce acknowledged Thursday that the proposal has been partially adjusted from the initial draft, with a partial reduction of tariffs on some components. However, the tariffs on light industrial products and textiles, “will still significantly harm the interests of relevant trading partners, including China”.

In this regard, a spokesperson for China’s Ministry of Commerce recalled that the Asian giant has consistently opposed any kind of unilateral tariff increases, and added that Beijing expects “Mexico to correct its wrong practices of unilateralism and protectionism as soon as possible.“ To safeguard the interests of relevant Chinese industries, he recalled that the Ministry of Commerce launched an investigation against Mexico in late September on trade and investment barriers, which is currently ongoing.

Referring to statements by Mexican officials linking the tariff increase to the upcoming revision of the T-mec, he noted that China welcomes countries resolving their differences through trade agreements, but stressed that “no agreement should be conditioned to affect the development of world trade or harm China’s legitimate interests”.

“China looks forward to working together with Mexico to strengthen communication and dialogue in the economic and trade field, properly manage differences, deepen pragmatic cooperation, and jointly safeguard the overall situation of bilateral economic and trade relations,“ he concluded.