Mexico considers new action against China amid pressure from US

Mexico City, Mexico - Mexico, under pressure not to serve as a back door for Chinese goods entering the US, has proposed a 50% duty on car imports from the Asian giant – up from 15-20%.

Mexican President Claudia Sheinbaum previously lamented the impact of Chinese imports on domestic manufacturing. © YURI CORTEZ / AFP

The initiative, contained in a bill submitted by the government to Congress, seeks to assuage US President Donald Trump – who has repeatedly urged trading partners to increase duties on China – while also bolstering Mexico's industrial sector.

The White House has said Chinese producers are abusing a free-trade deal between the US, Mexico, and Canada to send goods northward over the Mexican border tariff-free.

Mexican President Claudia Sheinbaum has also complained of the impact of Chinese imports on domestic manufacturing, and the bill says the increased tariff will seek to protect 19 industrial sectors considered "strategic."

It also proposes raising tariffs on other countries with which Mexico has no trade agreement.

Mexico replaced China in 2023 as the US' largest trading partner, with the Latin American country's northern neighbor buying more than 80% of its exports.

It sends nearly three million automobiles to the US a year, including cars and trucks assembled by US auto companies in Mexico.

If the bill is approved, light vehicle imports from China will be subject to a 50% tariff, and auto parts between 10 and 50%.

The bill, announced by the economy ministry Wednesday, said the changes sought to "protect the national industry in strategic sectors, replace imports from Asia with domestic production" and "improve Mexico's trade balance."

The initiative should protect 325,000 jobs in strategic industries and create thousands more, said the ministry.

El Paquete Económico 2026 garantiza Programas de Bienestar e inversión en educación, vivienda, trenes, carreteras y agua. Promueve la salud de la población y el Plan México. https://t.co/MWoFTS1JMP

— Claudia Sheinbaum Pardo (@Claudiashein) September 10, 2025

Mexico mulls hefty tariff on Chinese car imports US President Donald Trump has imposed a 25% tariff on car imports. © ALFREDO ESTRELLA / AFP

Two out of every ten light vehicles sold in Mexico are Chinese, according to official data. Sales in the sector grew by 10% last year.

Several auto giants, including American General Motors and Ford, German Volkswagen, and Japanese Nissan, Honda, and Toyota, have factories in Mexico.

According to the wording of the bill, South Korea, India, Indonesia, Russia, Thailand, and Turkey will also be affected by the tariff increases.

Trump has imposed a 25% tariff on car imports, with exemptions for vehicles with US content assembled in Mexico.

.@POTUS' message to automakers: "They're going to do better than ever before. They're going to sell cars in America at levels that they've never even thought of before and they're going to make more money than they've ever made before." pic.twitter.com/TahBQjs1Vp

— Rapid Response 47 (@RapidResponse47) June 12, 2025

Sheinbaum's ruling party holds a majority in Congress, and the bill is likely to pass.