On December 10 (local time), Mexico’s Senate and Chamber of Deputies approved a major tariff reform to impose significant import duties—up to 50%—on goods from China and several other Asian countries that do not have a free trade agreement with Mexico.
The new tariff regime will take effect starting in 2026 and aims to strengthen domestic industries and enhance market competitiveness.
This policy has drawn widespread attention and is expected to have far-reaching implications for China–Mexico trade, cross-border supply chains, and global manufacturing distribution.
Key Points of the New Legislation
The approved bill introduces one of Mexico’s broadest tariff adjustments in recent years, affecting 1,463 product categories across approximately 17 major industries. Existing tariffs—previously between 0% and 20%—will be raised to 10%–50% depending on the product type.
Overall Adjustments Include:
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316 product categories previously enjoying duty-free status will now be taxed.
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341 categories will have tariffs raised to 35%.
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302 categories will be set at 10%.
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Remaining products will fall under graduated rate increases between 10% and 50%.
Most goods will be taxed in the 10%–35% range, while certain strategic industries may see maximum rates of up to 50%.
Industries Most Affected by the Tariff Increases
The new tariff structure covers a wide spectrum of sectors. Key industries and the corresponding tariff ranges include:
Textiles & Apparel
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1,014 tariff codes
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10%–35%
Steel & Steel Products
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249 tariff codes
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15%–50%
Automobiles & Auto Parts
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235 tariff codes
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20%–50%
Plastic Products
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81 tariff codes
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10%–35%
Home Appliances
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18 tariff codes
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15%–30%
Toys
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37 tariff codes
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10%–25%
Furniture
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28 tariff codes
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15%–35%
Footwear & Leather Goods
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67 tariff codes
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10%–30%
Paper & Paperboard
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47 tariff codes
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10%–20%
Motorcycles
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8 tariff codes
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20%–40%
Aluminum Products
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21 tariff codes
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15%–35%
Cosmetics & Soaps
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24 tariff codes
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10%–25%
Implications for Global Trade and Supply Chains
Mexico’s decision marks a significant shift in its trade policy and may impact global production layouts, especially for China-origin goods entering North America through Mexico.
Potential impacts include:
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Higher import costs for manufacturers and distributors
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Possible relocation of supply chains to FTA-covered countries
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Increased customs compliance and longer clearance timelines
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Rising operational costs for industries relying on Asian imports
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Adjustments to logistics planning, tariffs, and routing strategies
Companies engaged in China–Mexico trade, nearshoring operations, or automotive, textile, steel, or electronics supply chains should begin reassessing their cost structures, sourcing plans, and logistics schedules ahead of the 2026 implementation.
