Overview

• Mexico submitted a 2026 budget that would levy new import taxes on more than 1,400 products to boost domestic production.
• A separate bill sent to Congress proposes a 50% duty on Chinese light vehicles and 10%–50% on auto parts, with Chinese brands now accounting for roughly two in ten light vehicles sold in Mexico.
• The measures focus on countries without commercial treaties with Mexico, naming South Korea, India, Indonesia, Russia, Thailand and Turkey among those affected.
• The economy ministry says the package seeks to protect 325,000 jobs, replace Asian imports with local output, and improve the trade balance.
• Beijing has criticized the plan, the U.S. has pressed partners to curb Chinese rerouting through North America, and the ruling party’s majority makes passage likely.