Mexico Imposes Surprise Tariffs on Asian Goods in 2026 Budget
New taxes aim to boost local production.
Mexico’s government unveiled a bold 2026 budget proposal on Tuesday, introducing new import taxes on over 1,400 products, primarily from Asian nations, to bolster domestic production amid pressure from the United States to counter China’s economic influence. The move, announced by Treasury Secretary Édgar Amador, targets countries without trade agreements with Mexico, though he avoided explicitly naming China.
Speaking at a press conference, Amador emphasized that the tariffs align with World Trade Organization guidelines and are designed to minimize impacts on production costs and consumer prices. “These measures are part of discussions with our North American partners, but our primary goal is to strengthen domestic production and consumption while reducing trade deficits,” he said. The tariffs, expected to affect goods like cars, textiles, and plastics, follow Mexico’s earlier actions in December 2024, when it imposed duties on textiles and intensified seizures of pirated Asian goods.
The proposal comes amid strained trade negotiations with the Trump administration, which has pushed for a united North American front against China. US President Donald Trump has threatened to escalate 25% tariffs imposed earlier this year on Mexican products not covered by the USMCA trade agreement. Mexico’s ruling Morena party, holding majorities in both congressional chambers, is expected to approve the budget, ensuring the tariffs’ implementation.
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China, Mexico’s third-largest export destination and second-largest trading partner in Latin America, has voiced strong opposition. In August, Chinese spokesperson Guo Jiakun criticized the rumored measures, stating, “China firmly opposes restrictions imposed under various pretexts and coercion from others, which harm China’s legitimate rights and interests.” The tariffs risk escalating tensions with Asian trading partners while aligning Mexico closer to US strategic goals.
As Mexico navigates these complex trade dynamics, the government projects a 2026 budget deficit of 4.10%, down from 4.32% in 2025, with GDP growth expected between 1.8% and 2.8%. The Finance Ministry also forecasts tax collection to reach a record 15.1% of GDP, signaling confidence in balancing economic protectionism with fiscal stability.
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