Mexico Approves 50% Tariffs on Non-FTA Nations, Targeting Chinese Imports

Mexico's Congress granted final authorization on Wednesday, December 10, 2025, to new import duties championed by President Claudia Sheinbaum, introducing tariffs that could reach a maximum of 50 percent. The legislation primarily targets merchandise originating from the People's Republic of China and other nations without a formal Free Trade Agreement (FTA) with Mexico. The Senate confirmed the measure that evening in an accelerated session, recording 76 affirmative votes against five dissenting votes and 35 abstentions.

These revised duties, which modify 1,463 distinct tariff lines, are officially scheduled to take effect on January 1, 2026. The scope of the trade adjustment covers a broad spectrum of manufactured goods, including automotive components, textiles, furniture, various plastics, steel, aluminum, household appliances, and footwear. The Ministry of Finance projects that these new levies will increase import revenue by 51.9 billion pesos, equivalent to approximately $2.8 billion USD, during the 2026 fiscal year. The administration asserts the policy's dual objectives are to stimulate domestic manufacturing capabilities and to significantly reduce Mexico's substantial trade imbalance with China.

The legislative action occurs amid a charged geopolitical backdrop, following discussions between President Sheinbaum and U.S. President Donald Trump, who had previously suggested China was using Mexico to circumvent existing U.S. tariffs. Mexican industrial stakeholders have expressed hope that this closer alignment with the U.S. trade stance might prompt Washington to review tariffs currently imposed on Mexican steel and aluminum. President Sheinbaum, however, maintains the tariffs are fundamentally aimed at achieving national production targets, independent of surrounding political dynamics.

Official reaction from Beijing was one of strong condemnation, with Chinese authorities criticizing the move as unilateral and protectionist, issuing a warning for Mexico to "correct its erroneous practices" and indicating readiness to "take all necessary measures" to protect its commercial interests. Conversely, Senator Alejandra Barrales voiced concern that the tariffs could lead to increased consumer costs, suggesting Mexico was effectively compelled to "take sides" in the ongoing U.S.-China commercial friction. Manufacturers reliant on inputs from China, India, and South Korea have also voiced concerns that resulting cost inflation could negatively impact their operations.

Mexico’s trade relationship with China has shown significant asymmetry; the 2024 trade deficit approached $120 billion USD. Data from the National Institute of Statistics and Geography (INEGI) indicated the 2024 deficit reached $119.86 billion USD, stemming from approximately $10 billion in exports against over $130 billion in imports from China. This imbalance has doubled over the past decade, driven by escalating Mexican imports of Chinese machinery and consumer goods. The reliance on Chinese intermediate goods, such as copper, is critical for sectors like the Mexican automotive industry, raising concerns among U.S. officials about potential Chinese exports entering the U.S. market via Mexico.