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Mexico plans new import tariffs on countries without a free trade agreement

Mexico plans to impose new import tariffs on goods from countries without a free trade agreement, with the move said to be primarily aimed at China.

Mexico plans new import tariffs on countries without a free trade agreement

Mexican President Claudia Sheinbaum is seeking congressional approval to impose tariffs of up to 50% on goods from those countries. On Tuesday, Sheinbaum submitted to the Chamber of Deputies a proposal to amend the General Import and Export Duties Law.

The bill, prepared in connection with the 2026 budget proposal, foresees the application of tariffs ranging from 10% to 50% on goods produced in the automotive, textile, plastics, steel, apparel, toy, footwear, furniture, paper, and glass industries.

The proposal aligns with the Mexican government’s goals of reducing import dependency and protecting domestic industry. These goals had also been outlined in the ambitious Mexican Industrial Policy Plan announced in January. Since the ruling Morena party and its allies hold a majority in both houses of Congress, the reform is expected to pass.

Sheinbaum had previously announced that the government was considering imposing new tariffs on imports from countries without trade agreements with Mexico. The government is specifically planning to raise tariffs on imports from China.

Mexico’s spending on Chinese goods has risen in recent years, while its trade deficit with the East Asian economic powerhouse reached a new record high in the first half of 2025.

Meanwhile, Mexico’s growing trade ties with China and Chinese investments in the country are seen as a potential obstacle for the Mexican government in the 2026 review of the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA in 2020.

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