Mexican Chamber approves increase in customs duties on imports from China | World

The proposal would impose or increase tariffs – up to 35% for most – throughout 2026 on products such as automobiles, auto parts, textiles, clothing, plastics and steel from China and other Asian countries that do not have a trade agreement with Mexico, including India, South Korea, Thailand and Indonesia.

Mexico’s Economy Ministry presented the proposal in September, but it struggled to gain broad support despite the Morena Party’s majority in Congress. The government of President Claudia Sheinbaum says the measure aims to strengthen domestic production and address trade imbalances with China.

The approved draft is more flexible than the original version, which was blocked following strong opposition from China.

Analysts and private sector representatives say the initiative is aimed at pleasing the United States ahead of the next review of the United States-Mexico-Canada trade agreement (USMCA). They also point out that the measure aims to raise an additional 3.76 billion next year, as part of an effort by the Mexican government to reduce its budget deficit.

Rep. Claudia Selene Avila, of the Morena party, said during the Lower House session that the tariff reforms will not have an impact on inflation.

Mexico’s auto sector, one of the world’s largest, has warned that tariffs could reduce access to key imported components such as touchscreens in digital dashboards.

Last week, U.S. Trade Representative Jamieson Greer spoke out against using Canada and Mexico as export hubs for China, Vietnam, Indonesia and other major manufacturing nations.