Overview

• Economy Secretary Marcelo Ebrard presented a draft decree to the lower house that revises 1,463 tariff lines and would lift the average rate from 16.1% to 33.8%.
• The car duty would rise from about 20% to 50%, the maximum the WTO allows for developing countries, with broad increases across textiles, plastics, steel, appliances, aluminum, toys, furniture, footwear, paper, motorcycles and glass.
• The proposed hike would hit Chinese brands such as BYD, Chirey and MG and also affect automakers importing China-built models, including General Motors, Kia, Ford, Renault and Stellantis.
• Finance officials project roughly $3.76 billion in additional revenue in 2026 and say the basket was calibrated to limit inflation by focusing on items with limited local substitutes.
• Companies are weighing whether to absorb costs, raise prices or accelerate local production to access USMCA benefits, while authorities separately suspended temporary import permits for 400 firms over IMMEX compliance failures.