Mexico Imposes 50% Tariffs on Non-FTA Imports

The federal government issued a decree reforming the General Import and Export Tax Law, establishing new tariff rates for a broad range of industrial and consumer goods. The move comes as Mexico seeks to regulate imports from nations with which it lacks standing trade agreements, a category that encompasses major Asian economies, including China, which is currently engaged in trade disputes with the United States. The decree, published in the Federal Official Gazette (DOF), which enters into force on Jan. 1, 2026, impacts sectors ranging from steel and automotive to textiles and toys. 

The decree establishes a 50% tariff on various categories of passenger vehicles, including those with internal combustion engines and electric vehicles. This 50% rate also applies to goods transport vehicles, such as trucks. Automotive components face varying duties; for example, car bumpers, seat belts, and brake systems are subject to a 25% tariff. Forged parts for speed shafts and gearboxes face tariffs between 25% and 35%.

A significant portion of the decree targets metal imports. Steel products, including ingots, flat-rolled products, and bars, are subject to tariffs predominantly set at 35%, with some specific items, such as certain steel rods, taxed at 50%. Stainless steel products also face tariffs ranging from 20% to 50% depending on their thickness and specification. Aluminum imports, including bars, profiles, and construction materials like doors and windows, are subject to duties ranging from 10% to 35%.

The decree imposes tariffs on finished consumer products. Apparel, including coats, suits, trousers, and underwear made from cotton, wool, or synthetic fibers, faces tariffs primarily between 25% and 35%. Footwear, including sports shoes, boots, and leather shoes, is taxed at 35%. The decree also sets a 30% tariff on various toys, including wheeled toys, dolls, and electric trains. Additionally, beauty products such as makeup, shampoos, and creams face tariffs of 25% to 36%.

The decree includes a transitional article authorizing the Ministry of Economy (SE) to implement specific legal mechanisms for the importation of goods from countries with which Mexico does not have a Free Trade Agreement in force. The government said the objective of these measures is to guarantee the supply of inputs in Mexico under competitive conditions. 

After the publication of the new tariffs, the China Chamber of Commerce and Technology Mexico (China Chamber Mexico) warned that the action could have serious consequences for Mexican consumers and value chains. "China Chamber Mexico will seek to continue working with the authorities, proposing working groups and opening spaces for dialogue. We urge federal authorities to carefully review these measures, which will have direct consequences for the consumers and will reduce the competitiveness of value chains that use these inputs in Mexico,” reads the chamber’s LinkedIn post.

Political Pressure Behind the Tariffs

While the government frames the move as a tool to strengthen the domestic market, the decision occurs against a backdrop of intensifying trade friction, as reported by MBN. As China expands its footprint in Latin America, with direct investment reaching US$14.7 billion in 2024 and exports to the region rising 8% by November 2025, Washington has increased scrutiny on its southern neighbor.

The United States, which saw its own imports from China fall 18% in the same period, has raised concerns over alleged transshipment practices and urged Mexico to align its trade defenses. Guillermo Barba, Chief Economist, Top Money Report, notes that Mexico has limited room to resist American demands, particularly as the US threatens its own tariffs on Mexican exports. "The asymmetrical trade relationship with China, where Mexico imports far more than it exports, has intensified calls to shield local industries, making the new tariffs both an economic strategy and a political response to US pressure," Barba explained.