Mexico has approved major increases in import tariffs on products from several Asian countries, including India and China. The move is aimed at protecting domestic industries and raising government revenue. The new duties, which will take effect in 2026, will apply to a wide range of items, including vehicles and auto parts, textiles, garments, plastics, steel, footwear, and clothing.
The bill was passed by the Mexican Senate with 76 votes in favour, five against, and 35 abstentions, following approval by the lower house. Most goods will see tariffs rise up to 35%, while some categories may face increases of up to 50%. The original draft had proposed higher tariffs on around 1,400 products, but the final version reduced duties on nearly two-thirds of them.
Government officials have said the tariff hikes are needed to help local manufacturers compete with cheaper imports from Asia. The new duties are expected to protect jobs, strengthen domestic production, and increase Mexico’s role in global supply chains.
In addition to supporting local industry, the tariff increase is expected to boost government revenue. Analysts estimate it could generate an additional $3.76 billion next year, helping reduce the country’s fiscal deficit.
The decision comes amid rising global trade tensions and ahead of a review of the United States-Mexico-Canada Agreement (USMCA). Trade experts and business groups have warned that higher tariffs could disrupt supply chains, increase production costs, and push up prices for consumers.
Countries without free-trade agreements with Mexico, such as India and China, are expected to be the most affected. The higher duties may make their exports less competitive in the Mexican market.
Overall, the move is one of the most significant changes in Mexico’s trade policy in recent years. It shows the government’s priority to protect domestic manufacturing while navigating complex global trade relations. At the same time, Mexico seeks to maintain strong trade ties with key Asian partners, balancing economic protection with international cooperation.
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