Mexican Congress Approves Tariff Hike Against China

On Wednesday, the 10th, the Mexican Congress approved an increase of at least 35% in import tariffs on 1,400 products from 12 countries with which it does not have trade agreements, including Brazil and China—the latter being the most affected. The new tariffs are expected to take effect starting January 1, 2026.

The Senate passed the measure on Wednesday evening, following the Chamber of Deputies, which had already approved the increases in the early morning hours. President Claudia Sheinbaum’s party, which stated that the tariffs were necessary to boost national production, controls both houses. The Senate passed the bill with 76 votes in favor, five against, and 35 abstentions.

In addition to Brazil and China, South Korea, India, Indonesia, Russia, Thailand, Turkey, and Taiwan were also taxed.

A total of 1,463 tariff classifications will be modified for products in sectors including automotive, textiles, apparel, plastics, household appliances, and footwear, among others.

The new measure primarily affects Chinese products. Mexico imported $130 billion in goods from China in 2024, second only to imports from the United States. The Chinese government strongly criticized the proposed tariff increase when the proposal was announced in September.

In total, 35 senators abstained from the vote, arguing that the bill was drafted hastily without analyzing its impact on inflation and was a response to pressure from President Donald Trump.

In defense of the reform, lawmakers from the ruling party emphasized that it seeks to strengthen Mexico’s industrial sector, promote job creation, and expand supply chains.

**American Pressure**
Sheinbaum presented the proposal last September amid growing trade pressure from Trump and accusations that Mexico serves as a gateway for Chinese products into the United States.

Mexico, together with Canada, is preparing to negotiate the renewal of the North American Free Trade Agreement (USMCA) with the United States, facing new demands from the White House.

“These tariffs coincide with a wave of trade restrictions in the United States, and this raises a central question: Is Mexico defining its own trade policy or is it reacting to Washington, or worse, obeying it?” questioned Mario Humberto Vázquez of the opposition PAN party.

Sheinbaum rejected the criticisms, arguing that the measure is part of the so-called Mexico Plan, a project she launched to strengthen the domestic market, reduce dependence on imports from third countries, and increase the proportion of national content.

After the reform was announced in September, China warned that it opposed any “coercion” to impose restrictions on its exports and announced that it was studying retaliatory measures.

The Sheinbaum government proposed a “working group” to the Asian giant to address the initiative, though few details of the dialogue have been disclosed.

Source: O Estado de S. Paulo

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