Overview

• The draft budget would raise duties on light vehicles from China to 50% and set auto‑parts tariffs between 10% and 50%, covering roughly 1,400 product lines across sectors such as textiles, steel, electronics, toys and furniture.
• Officials say the measures target suppliers from countries without free‑trade agreements, remain within WTO limits and aim to protect domestic manufacturing and an estimated 325,000 jobs.
• Mexico’s Economy Ministry estimates the tariff plan would affect about $52 billion in imports, or 8.6% of total purchases from abroad, with China the most exposed among non‑FTA partners.
• Beijing condemned the proposal as discriminatory and the result of external coercion, with the Foreign and Commerce ministries warning of countermeasures and urging Mexico to “think twice.”
• The bill sits before Congress, where Morena and allies hold majorities; Economy Secretary Marcelo Ebrard said higher rates would take effect roughly 30 days after passage as Mexico maintains talks with affected embassies and negotiates trade frictions with Washington.