The Mexican Senate approved this Wednesday (10) the increase in import duties on Brazil, China and nine other countries with which Mexicans do not have a trade agreement.
The bill, passed under commercial pressure from the United States, was approved by 76 votes, 5 against and 35 abstentions, during a session which lasted until the evening.
On Tuesday (9), the Chamber of Deputies had already voted on President Claudia Sheinbaum’s proposal, which must now be published so that the new tariffs come into force on January 1, 2026.
Besides China and Brazil, affected countries include South Africa, South Korea, United Arab Emirates, India, Indonesia, Nicaragua, Thailand, Taiwan and Vietnam.
The tariffs will affect 1,463 tariff classifications in 17 sectors such as automobiles, textiles, clothing, steel, plastics, household appliances, furniture and shoes, among others, mainly Chinese products. On this list, 316 classifications are currently not taxed.
The original proposal called for rates of up to 50%, but most were reduced to around 20 or 35% and the original rate was only maintained in some cases, such as cars. The 50% tax aims to primarily impact the Chinese market, responsible for 20% of vehicle sales in Mexico in November, according to the Mexican Association of Automobile Distributors.
Mexico was the world’s largest buyer of Chinese-made cars in the first half of this year, according to Shanghai-based consultancy Automobility.
China’s Commerce Ministry said the measure caused “substantial harm” and regretted Mexico’s unilateral decision.
Senators who abstained from the vote argued that the bill was hastily written, without analyzing its impact on inflation and in response to pressure from US President Donald Trump.
In support of the reform, ruling party lawmakers stressed that it seeks to strengthen Mexico’s industrial sector, promote job creation and expand supply chains.
The proposal “has the sole objective of strengthening the national economy,” Senator Juan Carlos Loera of the ruling Morena party said during the debate.
According to the N+ television channel, the products concerned represent $52 billion of Mexican imports, or 8.6% of the total. The government hopes that 320,000 jobs will be preserved in the country thanks to this measure.
Mexico’s Finance Ministry hopes to raise an additional $2.5 billion next year through tariffs on imports.
AMERICAN PRESSURES
Sheinbaum introduced the proposal in September, amid growing trade pressure from Trump and accusations that Mexico is the gateway for Chinese goods to the United States.
Mexico, alongside Canada, is preparing to negotiate the renewal of the North American Free Trade Agreement (T-MEC) with the United States, in the face of new demands from the White House.
Trump has also repeatedly warned that he would like to use military force against drug cartels in Mexico, which Sheinbaum said was unacceptable. He has recently softened his stance as Mexico has increased cooperation on security, immigration and trade.
The bloc bringing together the three North American countries covers 500 million people and represents 30% of global GDP, granting Mexico privileged access to the United States. Nearly 90% of its exports to the United States are currently duty-free, a competitive advantage Sheinbaum is determined to preserve.
“These tariffs coincide with a wave of trade restrictions in the United States, which raises a central question: Is Mexico setting its own trade policy or is it reacting to Washington, or worse, obeying Washington?” asked Mario Humberto Vázquez of the opposition PAN party.
Sheinbaum rejected this criticism, arguing that the measure is part of Plan Mexico, a project she launched to strengthen the domestic market, reduce dependence on imports from third countries and generate a greater proportion of national content.
CHINA TALKS OF MAJOR LOSSES
After approving the plan on Wednesday, China said the tariff increase would “significantly harm” the country and Mexico’s other trading partners. China’s Commerce Ministry said it had asked the Mexican government to “correct its erroneous practices of unilateralism and protectionism as soon as possible.”
The ministry said a trade barrier investigation, launched in September, regarding Mexico, is ongoing.
China is the second largest exporter to Mexico after the United States, with sales of goods worth $130 billion to Mexicans last year. The United States sold 334 billion dollars.
The Sheinbaum government has proposed a “working group” to the Asian giant regarding this initiative, although few details of the dialogue have been disclosed.
Several sectors and industries have expressed opposition to the initiative. Amapola Grijalva, a representative of the Mexico-China Chamber of Commerce, warned AFP that this could have an impact on inflation and that building a Mexican supply chain would require time and investment.
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