Mexico to Tax Non-FTA Imports in 2026, Hits Chinese Autos

Mexico plans to implement tariffs on imports from countries without a free trade agreement starting in 2026, according to the Economic Policy Package 2026 presented by the Ministry of Finance. China, whose presence in the Mexican automotive market has grown rapidly, is among the countries affected. By late July, Gustavo Guadarrama Bernal, director general, Mexican Association of Automobile Distributors in the State of Mexico (Amdamex), noted that Chinese brands now account for 9.5% of national vehicle sales.

The tariff increase forms part of Plan Mexico, aimed at boosting domestic production and addressing trade imbalances. The measure revises the General Import Tax (IGI), which posted record revenue growth in early 2025 due to higher tariffs on 544 tariff lines, stricter customs enforcement, and a weaker peso.

Industry leaders have stressed the importance of transparency. Guillermo Rosales, president, AMDA, said incomplete reporting by some Chinese brands, such as BYD, Geely, and Zeekr, distorts the market, while brands like MG, Changan, and JAC report sales to INEGI. In the mold-making sector, Jorge Ayala, director of Evolución en Moldes, said tariffs would help local manufacturers compete against cheaper imported molds.

Gabriel Padilla, director, INA, emphasized coordinating tariffs with the United States and Canada to protect critical supply chains for materials like lithium and rare earths. Tony Payan, director, Rice University’s US-Mexico Center, noted that the measures also position Mexico ahead of the USMCA review, ensuring strategic oversight of Chinese activity in the country.

Despite protective goals, Mexico’s average effective tariff remains low at 4.7%, supporting competitiveness while targeting sectors where transparency and fair competition are essential. Marcelo Ebrard stressed balancing local priorities with international obligations to avoid trade friction with China and the United States.