Mexico approves tariffs up to 50% on imports from China, Asian nations

The Mexican Senate has approved a bill to sharply increase tariffs on imports from China and several other Asian nations, a move Beijing has swiftly condemned as "unilateral and protectionist." The legislation, passed on Wednesday, will impose duties of up to 50% on more than 1,400 product lines, including automobiles, steel, textiles, and appliances, effective January 1, 2026.

Targeted countries and Mexico's rationale

The tariffs will apply to nations that do not have free trade agreements with Mexico, including China, Thailand, India, South Korea, and Indonesia. Mexican President Claudia Sheinbaum defended the measure, stating it was "taken to support domestic production." The decision comes amid broader trade tensions and direct pressure from the United States, Mexico's largest trading partner.

China's strong opposition and ongoing investigation

China's Commerce Ministry urged Mexico to reconsider, stating Beijing "consistently opposes unilateral tariff increases in any form" and values bilateral economic ties. The ministry revealed it had already initiated a trade and investment barrier investigation against Mexico at the end of September, which remains ongoing, to "safeguard the interests of relevant Chinese industries." In 2024, Mexico imported $129.79 billion worth of goods from China while exporting only $9.08 billion, highlighting a significant trade imbalance.

Broader context of US pressure and regional trade shifts

The Mexican tariff hike occurs in a tense regional trade environment. US President Donald Trump recently threatened to impose 5% tariffs on Mexican exports over a water-sharing dispute, adding pressure on Mexico City. Analysts suggest Mexico's move could be an attempt to align with US economic policies, curb Chinese imports, and redirect supply chains as part of a broader "nearshoring" trend, though it risks a significant trade dispute with Beijing.