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Mexico approves new tariffs on hundreds of imports
Mexican lawmakers passed a package of import tariffs on Wednesday, targeting over 1,400 products in a bid to strengthen domestic manufacturing, President Claudia Sheinbaum's administration said.
Scope and timeline of the measures
The new levies, set to begin on 1 January 2026, will apply to goods ranging from metals and automobiles to textiles and household appliances. Countries without a free-trade agreement with Mexico-including China, Thailand, India, and Indonesia-will face duties of up to 50%.
Government rationale and international reactions
Sheinbaum's office framed the tariffs as a necessary step to stimulate local production and reduce reliance on foreign goods. However, Beijing condemned the move, calling it damaging to trading partners and announcing an investigation into Mexico's trade policies. A Chinese commerce ministry spokesperson urged Mexico to "rectify" its decision.
"The tariffs will substantially harm the interests of trading partners, including China,"
Chinese Commerce Ministry spokesperson
Geopolitical tensions and U.S. pressure
The decision comes as Mexico negotiates with the U.S. to avoid punitive tariffs threatened by President Donald Trump. Washington has accused Beijing of using Mexico as a backdoor to circumvent U.S. trade barriers, particularly in the automotive sector, where Chinese brands like BYD and MG have expanded operations.
Trump has also threatened additional tariffs on Mexico, citing disputes over water rights under an 80-year-old treaty governing the Rio Grande. On Monday, he proposed a 5% duty, accusing Mexico of violating agreements that guarantee U.S. farmers access to water supplies.
"It is very unfair to our U.S. Farmers who deserve this much-needed water,"
Donald Trump, in a social media post
Broader implications for trade
The U.S. remains Mexico's largest trading partner, but the new tariffs could strain relations with other key markets. The BBC has reached out to embassies for Thailand, India, and Indonesia for comment, though none have responded as of Thursday.
China, meanwhile, has signaled plans to deepen ties with Latin America and the Caribbean, emphasizing trade and innovation as part of its regional strategy.
