List Released! Mexico Announces 50% Tariff On 1,371 China Product Categories

On September 10, 2025, Mexican President Claudia Sheinbaum announced a tariff reform proposal as part of her "Plan Mexico" industrial policy.

The reform imposes higher tariffs on certain categories of imported products from countries that have not signed a free trade agreement with Mexico (such as China, Southeast Asian countries, South Korea, India, etc.).

Specific tariff details

📌 The new tariffs will apply to imported goods under 1,371 tariff codes, accounting for 16.8% of all tariff codes in Mexico.

Proposal to impose tariffs of 10%, 20%, 25%, 30%, 35%, and 50%.

📌 Imported goods with a total impact value of approximately 52 billion USD, accounting for 8.6% of Mexico's total imports.

📌 Only for countries without free trade agreements, mainly targeting Asian countries (China, Southeast Asian countries, etc.). Does not affect partners with agreements such as the United States, Canada, or the European Union.

The tariff is expected to be implemented before December 31, 2026, with a possible extension.

Which products will be subject to the new tariffs?

⚠️ Light vehicles: The tariff on light vehicles imported from China and other Asian countries (such as South Korea, India, Indonesia, Russia, Thailand, and Turkey) will increase from the current 20% to 50%. Chinese cars now hold an 18.1% share of the Mexican market.

⚠️ Auto parts and inputs: including engine components, transmissions, chassis, etc., with a tax rate range of 10% to 50%, depending on the type of part.

⚠️ Motorcycles: Tariff set at 35%.

⚠️ Steel products: steel bars, steel pipes, and rolled steel, with a tariff rate of 35%.

⚠️ Toys: Various toy products, tax rate 35%.

⚠️ Aluminum products: aluminum sheets, aluminum alloys, etc. No specific values specified, tax rate ranges from 10% to 50%.

⚠️ Footwear: Various types of shoes, tax rate ranging from 10% to 50%, exact value not specified.

⚠️ Cardboard boxes: No specific value specified, tax rate ranges from 10% to 50%.

⚠️ Fabrics: Textiles and items such as bedding, with no specified exact value, have a tax rate ranging from 10% to 50%.

⚠️ Bathroom supplies: Bathroom fixtures, such as sinks and toilet components, unspecified exact value, tax rate 10% to 50%.

⚠️ Personal care: Shampoo and other personal hygiene products, unspecified exact value, tax rate 10% to 50%.

⚠️ Water pumps and fans: Mechanical equipment such as water pumps and fans, unspecified exact values, tax rate 10% to 50%.

The proposal still requires approval from Congress, but given that the ruling party holds a majority of seats in Congress, the likelihood of it passing is high.

Imposing higher tariffs on products imported from China could to some extent appease the governments of the United States and Canada, both of which have raised strong concerns about Mexico's economic ties with China.

The United States is putting pressure on Mexico to limit its economic ties with China. The U.S. is concerned that China is using Mexico as a "backdoor" to enter the North American market, especially considering Mexico's significant automobile exports to the U.S. (Mexico is a major automobile supplier to the U.S.). In 2024, Mexico's trade deficit with China reached $120 billion. This move is also seen as a way to improve relations with the U.S. and Canada ahead of the 2026 review of the United States-Mexico-Canada Agreement (USMCA).

The imposition of additional tariffs is expected to generate an additional 70 billion pesos (approximately 3.76 billion USD) in tariff revenue annually.

China is Mexico's second-largest source of imports, accounting for 19.96% of Mexico's total imports, and this move may lead to increased import costs and inflationary pressures.