Mexico approves import tariffs and affects Brazil, China and 10 other countries from 2026

The Senate of Mexico approved, on Wednesday night (10), the increase in import tariffs for products from countries without a trade agreement with the country, including Brazil, China, India and South Korea. The measure is part of an economic package defended by President Claudia Sheinbaum and represents one of the biggest Mexican tariff revisions in recent decades.

The proposal had already received approval from the Chamber of Deputies and now only depends on official publication to come into force in January 1, 2026. In the Senate, the text was approved by 76 votes in favor, 5 opposites e 35 abstentionsafter a session marked by long debates.

Tariffs affect 17 industrial sectors and more than 1,400 products

The new regulation affects products from Brazil, China, South Africa, South Korea, United Arab Emirates, India, Indonesia, Nicaragua, Thailand, Taiwan and Vietnama group of countries with a strong presence in Mexican foreign trade.

Under the new rules, 1,463 tariff classifications will be readjusted in sectors:

automotive

textile and clothing

steelworker

electronics and household appliances

furniture and wood

shoes

plastics

metal products

To 316 of these itemsthere is currently no tax charge; all will have a tariff from 2026.

The initial version of the reform provided for surcharges of up to 50%, but after parliamentary negotiations the values ​​were adjusted to a range between 20% e 35%. Still, some sectors will maintain the ceiling 50%especially in the automotive sector — considered the most sensitive for bilateral trade with China.

The goal is to contain the advance of Chinese exports in the Mexican market

The automotive sector accounts for a significant part of the justification presented by the Mexican government. In November, Chinese automakers already represented 20% of car sales in Mexicoaccording to the Mexican Association of Automotive Distributors (AMDA).

The consultancy Automobility, from Shanghai, points out that Mexico has become the world’s leading buyer of Chinese-made vehicles in the first half of 2025surpassing countries in Europe and the Middle East.

For the Sheinbaum government, the increase in tariffs aims to:

stop the advance of foreign automakers over local production;

protect jobs in the national automotive chain;

encourage new manufacturing units in Mexican territory;

guarantee competitiveness for companies integrated into the USMCA (trade agreement between Mexico, USA and Canada).

China criticizes measure and talks about “unilateral protectionism”

The Chinese government’s reaction was immediate. In an official note, the Chinese Ministry of Commerce declared that the tariffs will generate “substantial losses” for Chinese companies and classified the Mexican decision as unilateral and protectionist.

Beijing said it has formally requested the Mexican government to “correct its erroneous practices as soon as possible” and said it will monitor the economic impacts of the measure.

China is now Mexico’s second largest trading partner, behind only the United States — and the dispute between Washington and Beijing has influenced trade policy decisions across the region.

Senators cite US pressure and accelerated procedure

Among the 35 parliamentarians who abstained, there was criticism of what they called the accelerated procedure. Some senators stated that the tariff change was prepared “hastily” and under the direct influence of the Donald Trump administration, which is pressuring Mexico to restrict the entry of Chinese products.

Proponents of the proposal denied external interference and argued that the objective is “to preserve jobs and guarantee the survival of the national industry”.

According to the Mexican government:

US$52 billion in imports will be affected — the equivalent of 8.6% of all foreign purchases in the country;

the measure must protect around 320 thousand jobs;

the estimated additional revenue for 2026 is US$2.5 billion.

Impacts for Brazil

Brazil is also among the most impacted countries, especially in the steel, footwear, textile, plastics and electronics sectors. Products that currently enter Mexico exempt could face tariffs in the range of 25% to 35%.

Although the Brazilian presence is smaller than that of China, Mexico is the second largest destination for Brazilian exports to North Americamainly in:

automobiles and auto parts;

rolled steel;

chemicals;

footwear;

machines and equipment.

Analysts estimate that the measure could encourage Brazilian companies to seek new bilateral agreements or expand local operations in Mexico to avoid tariffs.

Government wants to strengthen internal production chains

The tariff strategy is part of President Claudia Sheinbaum’s broader industrial policy, which seeks to:

increase integration between Mexican companies;

encourage the reshoring and nearshoring of factories from Asia;

reduce dependence on imports of low-cost products;

consolidate strategic sectors linked to the USMCA.

With the official announcement expected in the coming weeks, Mexico will begin the biggest tariff restructuring since the early 2000s, in a move that should generate repercussions on global trade throughout 2026.