Mexico’s Lower House Passes Tariff Bill Targeting Non-FTA Trading Partners
Mexico’s Lower House Passes Tariff Bill Targeting Non-FTA Trading Partners
On 10 December 2025, Mexico's Chamber of Deputies approved President Claudia Sheinbaum's draft tariff bill — first submitted on 9 September — by a wide margin of 281 votes in favour, 24 against and 149 abstentions, completing the process within just two hours. The bill seeks to amend 'General Tax Code for Imports and Exports' by imposing additional tariffs on imports from countries without free trade agreements (FTAs) with Mexico, including China, India, Vietnam, Thailand and South Korea, in an effort to protect domestic industries.
The legislation will be forwarded to the Senate for deliberation and voting on 11 December. It is scheduled to complete all legislative procedures by 15 December 2025 and take effect on 1 January 2026.
Under the proposal, Mexico will apply higher tariffs to imports from China, South Korea, India, Vietnam, Thailand, Indonesia, Russia, Turkey, Brazil, Nicaragua, the United Arab Emirates, South Africa and other non-FTA partners. Countries with existing FTAs — such as the EU, the United States and Canada — will remain exempt.
The bill adjusts duties across 1,463 product classifications, lifting existing rates from 0–20% to a new range of 10–50%, affecting approximately 17 industries. Key sectors include textiles and apparel, steel and steel products, automobiles and components, plastics, household appliances, toys, furniture, footwear and leather goods, paper and paperboard, motorcycles, aluminium products, trailers and glass, as well as cosmetics and soap.
Following committee revisions, most tariff increases will fall between 10–35%. A total of 316 previously exempt categories will now be taxed for the first time, with 341 classifications set at 35% and 302 at 10%, while remaining items will follow a sliding scale.
| Category | Tariff Rate Range | Primary Source Countries |
| Light Vehicles | 50% | China, South Korea, India, Indonesia, Russia, Thailand, Turkey |
| Auto Parts & Inputs | 10%-50% | China, South Korea, India, Southeast Asian Countries |
| Motorcycles | 35% | China, India, Southeast Asian Countries |
| Steel Products | 35% | China, India, Russia, Turkey |
| Toys | 35% | China, Southeast Asian Countries |
| Aluminum Products | 10%-50% | China, India |
| Footwear | 10%-50% | China, Southeast Asian Countries |
| Cardboard Boxes | 10%-50% | China |
| Fabrics & Textiles | 10%-50% | China, India, Southeast Asian Countries |
| Bathroom Supplies | 10%-50% | China |
| Personal Care | 10%-50% | China |
| Water Pumps & Fans | 10%-50% | China, India |
China is Mexico's second-largest source of imports, accounting for 19.96% of total inbound shipments. The tariff hike may raise import costs and intensify inflationary pressures. Bilateral trade reached US$109.426 billion in 2024, including US$90.232 billion in Chinese exports and US$19.195 billion in imports from Mexico. China mainly supplies electronic components, kitchenware and motor vehicle parts, while importing crude oil, electrical equipment and medical instruments from Mexico.
Industry Impact: Reshaping Sino-Mexican Trade Dynamics
Automotive Sector: As one of Mexico's core industries, imported auto parts facing tariffs of up to 35% may significantly raise production costs and weaken competitiveness for Chinese automotive companies operating locally.
Textiles and Apparel: Tariff increases apply to 706 textile-related codes. Chinese textile exporters may need to reassess strategies or adjust supply chains to mitigate tariff exposure.
Home Appliances: Chinese home appliance brands maintain a strong market presence in Mexico. The new tariff regime could shift competitive dynamics, potentially creating opportunities for domestic Mexican brands.
Outlook: Trade Relations Enter an Adjustment Phase
Mexico's tariff restructuring reflects broader shifts in domestic industrial priorities and aligns with a global trend of rising trade protectionism. The timing of the adjustment suggests both industry protection concerns and geopolitical considerations. For Chinese enterprises, the development signals a period of both challenge and opportunity, underscoring the need to optimise global operations and enhance resilience amid a changing external environment.