Mexico approves new tariffs of up to 50% on China and others

Mexico’s Senate has approved a sweeping package of tariffs targeting hundreds of imported products—many from China—in a move the government says is intended to strengthen domestic industries. The new levies, signed off on Wednesday, will take effect on 1 January 2026.

The tariffs will apply to more than 1,400 products, including metals, vehicles, textiles, and household appliances. Dozens of countries without free trade agreements with Mexico—such as China, Thailand, India, and Indonesia—will be affected.

President Claudia Sheinbaum has argued the measures are necessary to support Mexican manufacturers. However, China criticised the tariffs, saying they would “substantially harm the interests” of its exporters. Beijing’s commerce ministry said it is reviewing Mexico’s trade policies and urged the government to reverse course.

The move comes as Mexico remains locked in negotiations with the United States over steep import duties threatened by President Donald Trump. The White House is considering tariffs of up to 50 percent on Mexican steel and aluminium, as well as additional levies tied to issues ranging from illegal immigration to fentanyl trafficking.

Trump this week also threatened a new 5 percent tariff on Mexico, accusing it of breaching an 80-year-old water-sharing agreement that secures supplies from Rio Grande tributaries for U.S. farmers.

Meanwhile, China has been expanding its presence in Mexico through investments and automakers such as BYD and MG. Washington has expressed concern that Chinese companies may be using Mexico as a base to circumvent U.S. tariffs.

Mexico’s government is attempting to defuse trade tensions on multiple fronts as it navigates growing pressure from both its largest trading partner, the United States, and its increasingly influential commercial rival, China.