Mexico Approves Up to 50% Tariffs on China and Other Nations in Major Trade Policy Shift

Mexico Introduces Sweeping Tariff Package Targeting Chinese Imports

Mexican lawmakers have approved a comprehensive package of new tariffs impacting hundreds of products, with many originating from China. The Mexican Senate passed the measures on Wednesday as part of an effort to strengthen domestic manufacturing.

President Claudia Sheinbaum has defended the tariffs as necessary to boost local production. The levies are scheduled to take effect on January 1, 2026, and will apply to a wide range of goods including metals, automobiles, clothing, and appliances.

Over 1,400 Products Face New Import Duties

The measures will impose tariffs of up to 50% on more than 1,400 products. Dozens of countries without free trade agreements with Mexico will be affected by the new policy, including Thailand, India, and Indonesia.

The move comes as Mexico engages in ongoing negotiations with the United States over steep import taxes that President Donald Trump has threatened to impose on Mexican goods.

China Condemns Trade Policy, Warns of Investigation

A spokesperson for Beijing’s commerce ministry responded to the tariffs on Thursday, stating the levies will “substantially harm the interests of trading partners, including China.”

The spokesperson added that an investigation into Mexico’s trade policy is currently in progress, urging the country to “correct” its decision.

China Expands Presence in Latin America

This week, China signaled plans for increased involvement with Latin American and Caribbean countries, aiming to deepen regional relationships through trade and innovation partnerships.

Chinese companies have significantly expanded their footprint in Mexico in recent years. Car brands like BYD and MG have established manufacturing operations in the country, raising concerns in Washington about potential tariff circumvention.

US Raises Concerns About Trade Route Exploitation

The United States has expressed concerns that Beijing may be using Mexico as a pathway to bypass American tariffs. This has added complexity to the trade relationship between all three nations.

The BBC has contacted the embassies in Mexico of Thailand, India, and Indonesia for comment.

Mexico Faces Multiple US Tariff Threats

Sheinbaum’s government is currently in talks with the Trump administration to reduce threatened tariffs on Mexican exports. These include:

• Potential 50% duties on Mexican steel and aluminum
• A proposed 25% levy aimed at pressuring Mexico to combat fentanyl trafficking into America
• A threatened 5% tariff over water access disputes

Trump Threatens New Tariff Over Water Treaty Dispute

On Monday, Trump threatened to impose a new 5% tariff on Mexico, accusing the country of violating an agreement that grants American farmers access to water.

“It is very unfair to our US Farmers who deserve this much needed water,” he posted on social media.

Trump referenced an over 80-year-old treaty that grants the United States water from Rio Grande tributaries. For decades, the US has accused Mexico of not meeting the terms of the agreement.

Trade Tensions Rise Between Key Economic Partners

The United States is Mexico’s largest trading partner, making the current tariff disputes particularly significant for both economies. The new Mexican tariffs add another layer of complexity to an already strained trade relationship as both countries navigate competing economic and political pressures.