Overview

• Mexico’s 2026 budget package seeks tariff hikes of 10% to 50% across 19 industries, with light vehicles and select auto parts reaching the 50% ceiling.
• The draft targets 1,463 tariff lines covering about 8.6% of imports (roughly $52 billion) and applies to suppliers without trade agreements, including China, South Korea, India, Indonesia, Russia, Thailand and Turkey.
• Officials say the measure aims to counter dumping and curb transshipment into the U.S., protect roughly 320,000–325,000 jobs and generate about 70,000 million pesos ($3.76 billion) in 2026 revenue.
• Beijing denounced the proposal as coercive and protectionist and vowed to defend its interests, while President Claudia Sheinbaum said Mexico seeks no conflict and is briefing affected ambassadors.
• Business chambers and analysts warned of higher consumer prices, disrupted supply chains and investment risks, with auto dealers citing more than 60,000 million pesos in investments and 32,000 jobs at risk.