Mexico has approved higher import tariffs on products from several Asian countries, including India and China. The move is meant to protect local industries and increase government revenue. The new duties will come into effect in 2026 and will cover products such as vehicles, auto parts, textiles, plastics, steel, footwear, and clothing.
The bill was passed in the Mexican Senate with 76 votes in favour, five against, and 35 abstentions, after it was approved by the lower house. Most products will face tariffs of up to 35%, while some could see increases as high as 50%. The first version of the proposal included higher tariffs on around 1,400 products, but the final plan reduced duties for nearly two-thirds of them.
Officials say the tariff hike is needed to help Mexican manufacturers compete with cheaper imports from Asia. They believe the new duties will protect jobs, strengthen domestic production, and improve Mexico’s role in global supply chains.
The tariff increase is also expected to boost government revenue, with experts estimating an extra $3.76 billion next year. This is seen as an important step to reduce Mexico’s fiscal deficit.
The decision comes as global trade tensions rise and ahead of a review of the United States-Mexico-Canada Agreement (USMCA). Some trade analysts and business groups have warned that higher tariffs could disrupt supply chains, increase production costs, and raise prices for consumers.
Countries without free-trade agreements with Mexico, including India and China, are likely to feel the biggest impact, as higher duties could make their exports less competitive.
Overall, the move is considered one of the most significant changes in Mexico’s trade policy in recent years. It shows the government’s focus on protecting local industries while managing international trade. Businesses and exporters are now closely watching the changes and preparing for the impact of the new tariffs.
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