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Mexico Raises Tariffs on 1,463 Non-FTA Imports as U.S. Targets Tougher T-MEC Origin Rules

Officials describe a pivot to protect domestic producers, raise revenue, with inflation effects kept small.

Overview

  • Mexico published a Diario Oficial decree imposing tariffs of 5% to 50% on 1,463 tariff lines from countries without free-trade agreements, effective January 1, 2026, covering sectors from textiles and plastics to toys, appliances and auto parts.
  • The government cites market distortion from low-priced imports and expects roughly 70 billion pesos in additional revenue with an estimated 0.2% inflation impact.
  • USTR chief Jamieson Greer proposed strengthening T-MEC rules of origin for non-automotive industrial goods to ensure benefits accrue within North America.
  • Trade data show Mexico’s 2025 non-automotive exports to the U.S. surged—computers, data-processing equipment and mechanical appliances led gains—while auto shipments fell; The Wall Street Journal reports Mexican manufacturing exports to the U.S. rose nearly 9% year to date.
  • Mexico’s vehicle imports from non-FTA countries will face tariffs of up to 35% starting January, and analysts expect car prices to rise 6%–8% in 2026, as global bodies like the WTO and ECLAC project much weaker trade growth next year.