Good news for Trump: Mexico is planning to raise tariffs on Chinese imports

In keeping with a cardinal nonsubjective of its Plan México economical initiative, the Mexican authorities intends to summation tariffs connected Chinese imports, the Bloomberg quality bureau reported connected Wednesday.

Bloomberg said that the Mexican authorities “plans to summation tariffs connected China arsenic portion of its 2026 fund connection adjacent month, protecting the nation’s businesses from inexpensive imports and satisfying a longstanding request of U.S. President Donald Trump.”

The Trump medication has urged Mexico to summation tariffs connected Chinese goods, which person flooded into Mexico successful caller years, sometimes displacing home-grown products. (Eduardo Esparza)

Citing “three radical briefed connected the matter,” the quality bureau reported that the higher tariffs are expected for imports including cars, textiles and plastics, and “aim to structure home manufacturers from subsidized Chinese competition.”

One of the cardinal goals of Plan México, an ambitious concern argumentation unveiled successful January, is to trim reliance connected imports from China and different Asian countries.

Mexico’s expenditure connected imports from China has accrued successful caller years, and the country’s commercialized shortage with the East Asian economical powerhouse deed a caller grounds precocious successful the archetypal six months of 2025.

One of Bloomberg’s sources, each of whom asked to stay anonymous, said that imports from different Asian countries are besides expected to look higher tariffs.

Citing its sources, Bloomberg said that “specific tariff rates weren’t instantly clear, and the program could change.”

Jorge Guajardo, a erstwhile Mexican ambassador to China and an advocator for higher tariffs connected Chinese goods, wrote connected LinkedIn that “hopefully” the tariffs referred to successful the Bloomberg study “are precocious capable that they support manufacture much than they rise revenue.”

Bloomberg reported that “increased tariffs connected China would boost Mexican gross and assistance [President Claudia] Sheinbaum’s propulsion to find ways to rein successful Mexico’s fund deficit, which reached the widest since the 1980s successful 2024 arsenic her predecessor spent heavy to implicit flagship projects earlier leaving office.”

Mexico’s existent tariffs connected imports from China 

A scope of Chinese goods are already taxable to tariffs erstwhile entering Mexico. They include:

• A work of up to 20% for Chinese vehicles, including EVs. (The U.S. and Canada person a 100% tariff connected Chinese EVs)
• A 25% tariff connected footwear from China.
• A 35% tariff connected galore Chinese textile products, including clothing.

Hundreds of different Chinese products crossed a scope of categories including steel, aluminum, wood, plastics, chemicals, insubstantial and cardboard, ceramics, glass, electrical material, philharmonic instruments and furnishings are taxable to tariffs successful the scope of 5%-50%.

Many of Mexico’s tariffs connected imports from China besides use to goods from different countries with which it doesn’t person a escaped commercialized agreement.

Higher tariffs connected China could assistance Mexico successful USMCA review 

Mexico’s increasing commercialized narration with China, and Chinese concern successful Mexico, are seen arsenic a imaginable stumbling artifact for the Mexican authorities successful the 2026 reappraisal of the United States-Mexico-Canada Agreement (USMCA), the North American escaped commercialized pact that superseded NAFTA successful 2020.

Imposing higher tariffs connected imports from China volition apt spell immoderate mode to appeasing the governments of the U.S. and Canada, some of which person critically questioned Mexico’s economical ties with the world’s 2nd largest economy.

Leaders successful some the U.S. and Canada person questioned Mexico’s increasing commercialized ties with China. (Screen capture)

U.S. President Donald Trump has adjacent accused Mexico of being a transshipment hub for Chinese goods, which the Mexican authorities denies.

Since aboriginal this year, the Trump medication has been urging Mexico to summation tariffs connected imports from China, and high-ranking officials, including President Sheinbaum, person appeared amenable to the idea.

In February, Sheinbaum said that imposing further tariffs connected imports from countries with which Mexico doesn’t person escaped commercialized agreements, specified arsenic China, was an option.

Throughout her presidency she has made it wide that maintaining the USMCA — and protecting Mexican manufacture from inexpensive imports — is simply a precedence for her government.

Raising tariffs connected imports from China would beryllium a wide and factual manifestation of that stated commitment, and could assistance Mexico execute improved trading conditions with the United States, which this twelvemonth has imposed duties connected a scope of Mexican products including steel, aluminum and cars.

The Chinese cars conundrum

Higher tariffs connected Chinese cars would marque those vehicles little competitory successful the Mexican market, wherever cars made by automakers specified arsenic BYD and Chirey person go precise popular.

Such is the request for Chinese cars successful Mexico that the country, Bloomberg reported, has go “the apical planetary destination for Chinese vehicles, overtaking Russia, according to the China Passenger Car Association.”

In the words of car assemblage advisor and expert Michael Dunne, Mexico has recovered itself “quite suddenly, awash successful Chinese cars.”

Imposing higher tariffs connected those vehicles would marque them much costly and frankincense little appealing to Mexican consumers, but astatine the aforesaid clip bounds Mexicans’ capableness to acquisition an affordable electrical conveyance specified arsenic those made by BYD, present the world’s largest EV manufacturer.

Analysis: Chinese cars determination successful to Mexico, rattling the USMCA

To person an each-way bet, truthful to talk — i.e. to springiness Mexican consumers astatine slightest immoderate entree to affordable Chinese cars portion appeasing the U.S. — Dunne told Mexico News Daily earlier this twelvemonth that the Mexican authorities could connection a quota to bounds the percent of Chinese cars that are allowed to travel into Mexico tariff-free oregon astatine a debased tariff rate.

Anything supra that quota could beryllium taxable to higher levels of tariffs.

It remains to beryllium seen whether that is the way Sheinbaum volition take to take, but the enactment is determination arsenic the president seeks to equilibrium the interests of the radical she represents with the unit — oregon demands — her authorities faces from the Trump administration, which is besides pushing Mexico to bash much to combat cartels and the northward travel of fentanyl and different illicit drugs.

With reports from Bloomberg