Mexico Senate approves up to 50% tariffs on China and other non-FTA countries

Key facts

• Mexico Senate passed new tariffs of up to 50% on over 1,400 products including metals, cars, clothing and appliances.
• The levies will take effect on 1 January 2026 and apply to countries without a free trade agreement with Mexico, including China, Thailand, India and Indonesia.
• President Claudia Sheinbaum stated the measures are needed to boost domestic production.
• China’s commerce ministry spokesperson said the tariffs will substantially harm the interests of trading partners including China and urged Mexico to correct its decision.
• The move comes as Mexico negotiates with the US over threatened US tariffs on Mexican steel and aluminium.