Mexico Targets Asian Goods With New Tariff Policy

The Chamber of Deputies has approved President Claudia Sheinbaum’s plan to impose tariffs on imports from countries without a free trade agreement with Mexico, mainly in Asia, after incorporating a series of modifications. 

The Committee on Economy, Trade and Competitiveness, chaired by PAN Deputy Miguel Ángel Salim, approved the revised draft to adjust numerous tariff classifications under the General Import and Export Tax Law. The measure received 10 votes in favor from MORENA and the PVEM, one vote against from Movimiento Ciudadano and eight abstentions from the PT, PAN and PRI.

During the review, legislators altered the original proposal by lowering the proposed tariff for 974 products and introducing 316 new import duties for goods originating from countries such as China, South Korea, India, Vietnam, Thailand, Taiwan, Indonesia, South Africa and the United Arab Emirates. 

The initiative seeks to foster a more competitive domestic environment through the application of tariffs on a wide range of industries, including automotive, textiles, apparel, plastics, steel, appliances, aluminum, toys, furniture, footwear, leather goods, paper, cardboard, motorcycles, trailers and glass.

MORENA ’s coordinator, Ricardo Monreal, stated on social media that this tariff initiative aims to strengthen local industry, protect employment and reinforce the domestic market. He urged lawmakers from all parties to support the proposal in a collective effort to benefit the country.

Salim explained that the presidential project initially targeted changes across 1,463 tariff items, with 706 relating to textiles, 249 to steel and iron products, 94 to automobiles and parts, and 81 to plastics. Out of these classifications, 316 currently face no tariff, while the rest already carry duties, including 341 items with a 35% rate and 302 with a 10% rate. The xommittee, he said, worked closely with the Ministry of Economy to refine and strengthen the proposal. As a result, 391 items will keep their current tariff structure.

Among the remaining 1,072 items, 596 correspond to import volumes below US$1.5 million annually. Of the 476 items that remain after this filter, 321 are sourced at least 50% from countries that hold free trade agreements with Mexico. Taking these factors into account, lawmakers decided to preserve the total number of 1,463 tariff classifications, which they described as a balanced configuration after considering the requests of strategic sectors and business associations.

The revised document removes 115 classifications and incorporates 115 new ones. In addition, tariffs were reduced to 5% for 104 items to bring them in line with Mexico’s main commercial partners and address industry demands. Meanwhile, 270 classifications tied to the automotive, aluminum and vehicle sectors will not be altered. According to Salim Alle, there were also targeted adjustments in specific subsectors, including the elimination of more than 40 auto-parts classifications and nearly 30 associated with requests from automotive distributors.

He also noted that two-thirds of the tariff package, 974 classifications, underwent a general reduction of 28% compared with the president’s initial proposal, except in cases where the lower rate would fall below the existing tariff. PVEM deputy José Antonio Gali López highlighted that more than 60% of the original proposal was modified over the course of the committee’s deliberations.

Political Factors Shaping Tariffs on Asian Imports

While Mexico has justified the new tariffs on Asian imports as a measure to strengthen domestic competitiveness, the decision is also shaped by political pressure from the United States. The Trump administration has been urging Mexico to impose duties on Chinese goods as part of negotiations to avoid US tariffs on Mexican exports, and senior US officials have repeatedly raised concerns about China’s growing presence in Mexico and allegations of transshipment. 

Guillermo Barba, Chief Economist, Top Money Report, noted that Mexico has little room to depart from US demands, especially as trade tensions intensify and sectors like steel push for stronger protections against Asian producers. The asymmetrical trade relationship with China, where Mexico imports far more than it exports, has further fueled calls in both countries to shield local industries, making the tariff policy not only an economic maneuver but also a political response to US pressure and broader geopolitical dynamics.