Mexico has approved sweeping new tariffs on imports from China, India, and other Asian nations without free-trade agreements, marking one of the most dramatic trade policy shifts in decades. The Senate voted overwhelmingly in favor of the legislation, setting duties between 5% and 50% on more than 1,400 products. The move aligns Mexico more closely with ongoing U.S. efforts to restrict Chinese imports and signals President Claudia Sheinbaum’s intent to strengthen domestic manufacturing.

The levies, set to take effect next year, target a wide range of goods including clothing, metals, machinery, and auto parts—areas where China’s industrial dominance has reshaped global supply chains. The bill passed with 76 votes in favor, five against, and 35 abstentions, despite months of lobbying from Asian governments and concerns from domestic businesses. Mexican officials say the new tariffs are intended to counter market distortions created by heavily subsidized foreign industries.

Sheinbaum’s administration has publicly dismissed claims that the tariffs are tied to President Donald Trump’s pressure campaign against China. However, the timing and design of the duties closely mirror U.S. trade policy, and analysts say the alignment could help ease American tariffs on Mexican steel, aluminum, and other key exports. The tariff package also follows similar actions taken by Canada to mimic U.S. restrictions, particularly on electric vehicles and metal products.

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Mexico’s finance ministry estimates the new measures will generate more than 52 billion pesos (about $2.8 billion) in additional revenue in 2025. Still, domestic manufacturers reliant on Asian inputs warn that higher costs could ripple through supply chains and drive inflation. Critics within and outside Sheinbaum’s Morena party argue the tariffs risk provoking trade disputes with major Asian economies that Mexico has increasingly relied on for investment and market diversification.

Notably, Chinese automobiles—now holding a significant 20% share of the Mexican market—will face the highest duties at 50%. Local auto groups and government officials support the tariff escalation, viewing it as necessary to protect Mexico’s massive manufacturing sector, which depends heavily on domestic vehicle production. The policy aims to counter a rapid surge in Chinese vehicle imports that grew from nearly zero six years ago to substantial market penetration today.

Beyond the immediate tariff hikes, the legislation empowers Mexico’s Economy Ministry to adjust duties dynamically and implement new legal mechanisms for managing imports. This flexible authority is expected to play a key role in next year’s critical review of the USMCA agreement with the United States and Canada. As Mexico navigates rising geopolitical tensions and shifting trade alliances, the new tariff framework positions the country for a more assertive and protective economic stance on the global stage.

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