Sheinbaum Eyes Higher Tariffs on China Amid US Pressure

The government of Claudia Sheinbaum plans to raise tariffs on Chinese imports as part of its 2026 budget proposal, to be presented in September. The move aims to shield domestic companies from low-cost imports and respond to a request from US President Donald Trump.

The tariff hikes are expected to cover imports such as automobiles, textiles, and plastics, protecting Mexican manufacturers from subsidized Chinese competition, according to three sources familiar with the plan who spoke on condition of anonymity. Other Asian countries could also face higher tariffs, one source told Bloomberg.

The final scope of Mexico’s new tariffs on China remains uncertain, and the plan could still change. Sheinbaum’s revenue proposal must be submitted to Congress by Sept. 8. Although congressional approval is required, MORENA holds a supermajority in both chambers, limiting the possibility of major changes.

The move comes as Washington pressures Mexico to curb the influx of cheap Chinese goods, which Trump claims end up entering the US market. Last month, Trump granted Mexico a reprieve from higher tariffs following a call with Sheinbaum to allow more time for trade talks.

Mexico has become the top global destination for Chinese cars this year, surpassing Russia, even with tariffs of up to 20%, still far below the 100% tariff imposed by the United States on Chinese EVs. The tariff increase could help Mexico boost revenues and reduce its widening budget deficit, the largest since the 1980s.