Mexico Imposes Up to 50% Tariff on China, Permanent Effectiveness Begins

The new policy imposes a 25%-50% tariff on related goods, covering 1,463 tariff lines, mainly targeting products from non-FTA partner countries such as China, India, and South Korea, and this policy is permanently effective.

This round of tariff adjustments implements targeted tax increases on different categories, covering multiple Chinese export advantage categories.

• Textiles and garments: 35% to 45% tariffs

• Shoes, small appliances, furniture: 35% tariff

• Toys: 30% tariff

• Automobile: up to 50% tariff

Among these, the automotive industry chain has been severely impacted, with finished passenger vehicles, electric vehicles, and key components imported from non-free trade agreement countries—such as car radios and headlight lenses—all falling within the scope of the tariff and subject to the highest rates under this tariff adjustment.

In the automobile sector, China's exports to Mexico have shown remarkable growth.

In 2025, China's automotive exports to Mexico reached 625,000 units, surpassing Russia for the first time as the largest export destination, among which 199,000 new energy vehicles were exported, representing a year-on-year growth of 140.8%.

The market share of Chinese brands has risen from less than 1% in 2020 to about 19%.

The new tariff policy covers almost all the product categories in which China has a competitive advantage in exports to Mexico, and the impact on related export enterprises is self-evident.

As the new tariff policy takes effect, Mexican customs has simultaneously tightened its oversight across the board, intensifying scrutiny of origin, commodity classification, and declared values, and cracking down hard on transshipment through third countries and undervaluation or false declarations. Previously loosely regulated small personal parcels are now also subject to strict supervision.

The relevant measures have directly led to an extended customs clearance cycle, increased inspections, and a higher risk of goods being held for Chinese export companies, significantly raising their operational costs and financial pressures.