MEXICO CITY – Mexico is getting ready to boost taxes on goods from China and other Asian countries as part of a strategy move to protect its own sectors while expanding economic connections with the United States. President Claudia Sheinbaum’s 2026 budget proposal is likely to include the increased tariffs, which will be given to Congress by September 8.
The anticipated tariff increases, which are an important part of the new administration’s agenda, come after months of pressure from the Trump administration to stop subsidized Chinese goods from coming into North America. The idea of a “Fortress North America” is to enhance commerce and manufacturing between the U.S., Mexico, and Canada while limiting imports from China. This action fits with that idea.
Reports say that the tariffs will hit areas like cars, textiles, and plastics, which have seen a lot of cheap Chinese goods come in. The China Passenger Car Association says that Mexico is now the most popular place in the world for Chinese-made cars. This is because Mexico has a lower tax on Chinese cars (up to 20%) than the U.S. does on electric vehicles (EVs) from China (100%).
Concerns about the economy at home also played a role in the choice. In 2024, Mexico’s trade imbalance with China was around $120 billion. The additional duties are expected to bring in more money for the government, which will help Sheinbaum’s administration close the country’s budget deficit, which is at its highest level since the 1980s.
People think that Mexico is trying to get ahead of a big disagreement with the Trump administration before the United States-Mexico-Canada Agreement (USMCA) is reviewed next year. Sheinbaum’s party has a supermajority in both chambers of Congress, which makes it simple for the budget to pass. However, some experts have said that the tariffs may be “a bit late” to work because Chinese enterprises have already made a big impact on the Mexican market.