Mexican Tariff Plans Could Cause Headaches in Beijing
MEXICO CITY – Mexico is weighing steep new tariffs on a broad swath of imports as part of an industrial policy aimed at protecting domestic manufacturers.
President Claudia Sheinbaum in September introduced a bill that would impose duties ranging from 10% to 50% on goods spanning various industries, including the automotive sector, which is key to many US-based companies.
The measure is part of the government’s Plan México initiative, unveiled earlier this year, which seeks to reduce dependence on foreign suppliers and increase local production. The bill calls for sourcing at least 50% of “strategic supplies” domestically, positioning tariffs as a “strategic tool” of trade and industrial policy rather than simply a revenue generator.
While Mexico’s existing trade agreements exempt roughly 50 trading partners from the hikes, China is not among the unaffected nations.
Indeed, economy minister Marcelo Ebrard said the tariffs are intended in part to address Mexico’s trade deficit with China, which totaled $57 billion in the first half of the year. He estimated the measures would generate 70 billion pesos ($3.76 billion) in additional revenue.
Chinese cars are a prime target. Nearly 30% of Mexico’s vehicle imports come from China, whose automakers are rapidly growing market share by undercutting established brands. In the first six months of this year, Mexico imported about 280,000 Chinese-made cars, up 25% from 2024. That total put Mexico ahead of Russia as the largest destination for Chinese-built vehicles.
Chinese EVs in particular continue to pressure local and US brands on price. BYD’s Dolphin Mini sells in Mexico for about 400,000 pesos ($21,500), less than half the price of GM’s Equinox EV, which starts at 877,000 pesos. BYD has paused plans for a Mexican assembly plant, but its low-cost domestic supply base ensures its models remain competitive.
Hot Takes
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