Mexico Approves Sweeping Tariffs of Up to 50% as Tensions Rise with China and the US

Mexico has signed off on a far-reaching set of new import tariffs covering more than 1 400 products, a move that could reshape global trade flows as the country comes under simultaneous pressure from China and the United States (US).

The Mexican Senate approved the measures this week, paving the way for duties of up to 50% on metals, vehicles, clothing, household appliances, and other goods originating from countries without free trade agreements with Mexico, including China, Thailand, India, and Indonesia.

President Claudia Sheinbaum argues the tariffs are necessary to strengthen domestic industry. Beijing sees it quite differently. China’s commerce ministry warned the move will “substantially harm” its interests and has urged Mexico to reverse course as it opens a formal investigation into the policy shift.

The tariff package lands at a sensitive moment. Washington has accused Chinese companies of routing goods through Mexico as a backdoor into the US market, and US President Donald Trump has floated fresh tariffs on Mexican imports on top of existing duties on steel, aluminium, and some automotive products.

Set to come into force on 1 January, the new levies now place Mexico in the awkward position of trying to manage two powerful relationships at once. The US remains its dominant trading partner, but China is also an increasingly important Mexican trade partner. The coming months will show whether Sheinbaum can protect local producers without triggering a wider trade confrontation on either front.