Mexico’s government is preparing to raise import duties on light vehicles from China and other countries without free-trade agreements to 50%, up from around 20%, as part of a broader tariff package sent to Congress.
Officials said the measures, which cover about 1,463 tariff lines and roughly US$52 billion in annual imports, aim to shield domestic industry and jobs.
According to Economy Minister Marcelo Ebrard, the auto duty would be lifted “to the maximum level allowed” under WTO rules. “Without a certain level of protection, you almost can’t compete,” he told reporters, noting that many Chinese vehicles are entering “below what we call reference prices.”
The government estimates the package could help safeguard 320,000–325,000 industrial and manufacturing jobs.
President Claudia Sheinbaum stressed the initiative is not linked to geopolitics. “We don’t want a conflict,” she said, adding that Mexico is in talks with ambassadors from affected countries and framing the shift as an industrial strategy to boost local production.
The tariff hikes extend beyond cars, with increases planned for auto parts, steel, textiles, paper and cardboard, glass, toys, perfumes and cosmetics.
Press briefings indicated light vehicles would move to a 50% duty across 13 tariff subheadings, while around 141 auto part subheadings would see increases ranging from 10% to 50%.
Once approved by Congress, where the ruling coalition holds a majority, the new rates would take effect 30 days after publication in Mexico’s official gazette.
China, now Mexico’s largest foreign supplier of light vehicles, criticized the plan and pledged to defend its interests, calling the shift a response made “under various pretexts.”