Mexico is preparing to raise tariffs on goods imported from countries that are not covered by free trade agreements, while ensuring that the duties remain compliant with World Trade Organization (WTO) rules, Finance Minister Edgar Amador announced Tuesday, Bloomberg reports.
The proposed tariffs, which are being considered for sectors such as automobiles and manufacturing, are part of a broader economic plan aimed at boosting local production and trimming the country’s fiscal deficit. However, details regarding the specific rates or timeline have yet to be disclosed. Amador said that a comprehensive trade plan developed alongside the economy ministry will be unveiled shortly.
The tariff adjustments were included in the government’s draft budget for 2026, presented late Monday by Amador. The plan also proposes a revision to Mexico’s general import tax, though the extent of the change remains unspecified.
“There has been a change in the parameters of trade policy around the world. One of the results has been economic introspection,” Amador said during a press briefing, flanked by tax and finance officials. He also acknowledged that the new tariff proposal delayed the budget’s release until just before the submission deadline.
Expected Revenue Gains and Legislative Backing
Carlos Lerma, deputy finance minister for revenue, estimated that the new tariffs could generate an additional 70 billion pesos — approximately $3.76 billion — in tax revenue for 2026.
The proposed budget will require approval by Mexico’s Congress, but President Claudia Sheinbaum’s ruling coalition holds a commanding majority, which is expected to ease its passage with minimal amendments.
According to Bloomberg Economics analyst Felipe Hernandez, WTO rules require that Mexico apply the same tariff rate to all countries with which it does not have a free trade agreement. This principle, known as the most-favored-nation clause, ensures that trade policies adhere to global norms.
US Pressure and Domestic Industry Goals
While the looming tariff hikes are likely to satisfy longstanding demands from US President Donald Trump to impose barriers against Chinese goods, Amador stressed that the initiative is aligned with Sheinbaum’s “Plan Mexico.” The program is designed to enhance domestic production across multiple sectors.
Last week, Sheinbaum described the tariffs as part of her strategy to strengthen Mexico’s economy by fostering industrial development and reducing dependence on foreign competition. Bloomberg previously reported in August that Mexico had considered raising tariffs on imports from Asian countries, including China, to protect local manufacturers from cheaper Chinese goods.
China, which ran a $71 billion trade surplus with Mexico last year, is a major supplier of products such as copper ore and concentrates. It has also recently overtaken Russia as the largest exporter of cars to Mexico, with shipments rising nearly 25% in the first half of this year compared with the same period last year, according to the China Passenger Car Association.
Economic Outlook Amid Trade Uncertainty
The proposed budget comes amid signs of slowing economic growth, driven in part by trade-related uncertainty. For 2025, the government has reduced its GDP growth forecast to no more than 1.5%, though it expects an expansion between 1.8% and 2.8% in 2026.
Bloomberg’s reporting underscores the delicate balancing act Mexico faces as it navigates global trade shifts, domestic industry pressures, and international diplomacy — all while striving to sustain economic growth and fiscal stability.
