Overview
- Mexico will levy 5%–50% duties on 1,463 tariff lines covering about $52 billion in imports from non‑FTA partners starting January 1, 2026, with China among the named countries.
- The Wall Street Journal says Mexico’s relatively low effective tariff burden has helped replace higher‑tariffed Chinese goods, with U.S.–Mexico goods trade expected to approach $900 billion this year.
- From January to November 2025, auto exports to the U.S. fell around 6% while other manufactured shipments rose about 17%, underpinning the overall export increase.
- Small‑business representatives warn the new duties will push up input and consumer prices, with one group estimating increases of 45%–55%.
- Experts caution the policy may trigger disputes under investment protection treaties as China initiates scrutiny and some exporters route goods through Vietnam to avoid the tariffs.