Mexico to Apply 5%–50% Tariffs on Non-FTA Auto Parts

Mexico will impose new import tariffs ranging from 5% to 50% on goods from countries without free trade agreements, including China, starting January 2026, according to a decree published in the Official Gazette of the Federation (DOF). The measure will apply to more than 1,000 tariff lines and is expected to affect daily-use products and industrial inputs, with auto parts facing the highest rates.

The decree amends several tariff classifications under the General Import and Export Tax Law. It establishes that duties will be calculated based on customs value rather than final retail price. Depending on the product category, tariffs will be assessed per liter, kilogram, or unit.

Auto parts are among the most heavily affected goods, with tariffs ranging from 25% to 50%. These include radio receivers for vehicles, headlight lenses or reflectors, and complete bumpers. The government states that these products are subject to higher rates due to their impact on domestic manufacturing.

Other goods facing tariffs of up to 35% include lunch boxes, canteens, bottles, jars, printed materials, glass, steel, pipes, doors, metal furniture, and bedding. Apparel items for men, women, and children, as well as coats, rainwear, footwear, personal hygiene products, and headwear, will also be subject to the same rate.

A 30% tariff will apply to office and school supplies, toothpaste, decorative figurines, household fans, toys, puzzles, and inflatables. Products such as shampoo, microwave ovens, and furniture made of plastic, bamboo, or rattan will face duties of 25%.

Mexican authorities say the measure aims to protect domestic industry and employment. Lawmakers recently approved tariff barriers on Asian imports, citing their impact on national producers and more than 350,000 jobs across several regions.

Minister of Economy Marcelo Ebrard says the government expects the tariffs to generate more than MX$70 billion  (US$3.89 billion) in additional revenue. He adds that the estimated inflationary effect would be limited, with a projected increase of 0.2%. “The objective is to strengthen national production while maintaining price stability,” he says.

Industry specialists warn that higher import costs could be passed on to consumers, particularly for products sourced from Asia or countries without trade agreements. The full list of affected products is available in the DOF, and importers will have one year to adjust their supply chains before the tariffs take effect.

The Mexican Automotive Industry Association (AMIA), representing about 30 automakers described the tariff increase as a “key tool” to strengthen domestic production and prevent market distortions by ensuring fair competition.

The tariff shift has raised concerns in China and South Korea. China urges Mexico to “correct” what it called unilateral measures, while South Korea says it is reviewing the impact. Ebrard says talks will continue and stressed the policy aims to protect domestic sectors, noting that auto imports threaten 1.3 million industry jobs. India has also proposed a preferential trade agreement with Mexico to mitigate tariffs that could affect about US$2 billion in Indian exports, according to Indian Commerce Secretary Rajesh Agrawal.