The Chamber of Deputies generally approved a substantial increase in tariffs applied to imports from China and other Asian countries with which Mexico does not have trade agreements, such as India, South Korea, Thailand and Indonesia.
With 281 votes in favor, 24 against and 149 abstentions, the initiative promoted by the majority of Morena and its allies establishes taxes ranging from 10% to 50% for products such as automobiles, textiles, clothing, plastics, steel and various manufactures. The central argument is to protect the national industry against what they classify as unfair trade practices and strengthen national content. The opposition, in contrast, warned of impacts on the final consumer and questioned the absence of complete impact studies.
Regarding the expected benefits, Miguel Ángel Salim Alle, president of the Economy, Trade and Competitiveness Commission in San Lázaro, highlighted that the measure aims to reactivate sensitive sectors such as auto parts, textiles, clothing and footwear, in addition to stimulating job creation. “It is a good step for the industry to begin to activate… all those sensitive sectors were protected.”
He recognized that The tariff policy seeks to reduce dependence on Asian suppliers and stimulate import substitution. Although this process could take up to two years, he considered that the inflationary impact will be moderate.. “According to a study, the inflationary impact will be barely 0.3%. Ultimately what is gained is to maintain jobs and generate companies in Mexico.”
He specified that the approved version incorporated changes in 609 tariff fractions, result of working groups with business chambers and industrial associations.
However, various sectors expressed concern. Guillermo Rosales, executive president of the Mexican Association of Automotive Distributors, warned that the increase will affect the competitiveness of several brands, not only the Chinese ones. “Most of the vehicles sold in Mexico come from countries without a free trade agreement. There will be a decrease in their market share.” He added that it is not yet possible to estimate how much of the new cost will be absorbed by manufacturers and how much will be passed on to the consumer.
Another warning point comes from the field of foreign trade. Miguel Ángel Landeros, president of the Western Comce, considered it wise to stop the entry of undervalued merchandise, but warned of a greater risk: smuggling. “If there is no effective control at customs, what you can cause is an escalation of irregular merchandise.”
For Israel Macías, professor at the Pan American University, The decision has a political background. “What was sought was to look good with the United States and with President Donald Trump. It is a sign of alignment to avoid conflicts towards the commercial renegotiation that is expected for next year.”
According to the academic, Mexico seeks to show “a united front” in the trade tension between Washington and Beijing, where China is seen as the “number one enemy” of the US industry.
Regarding the scope of the reform, tariffs on 1,463 items from countries without a trade agreement were increased. The modifications will come into force on January 1, 2026, beginning a rearrangement in the cost structure of a good part of the country’s industrial and commercial sector.
At the time of going to press, the discussion continued regarding the reserved articles. Today the Senate is summoned to endorse the opinion and send it to the federal Executive for promulgation.