Overview
- Mexico's Congress approved increases of 5% to 50% on 1,463 tariff lines for imports from countries without free-trade agreements, taking effect Jan. 1, 2026.
- China’s Ministry of Commerce urged Mexico to reverse what it called unilateral protectionism and said it will closely monitor implementation and impacts.
- South Korea said the effect on its exporters should be limited because Mexico softened some rates and preserved programs that allow preferential import of industrial inputs.
- India faces an estimated $1 billion hit to auto shipments as Mexico lifts the car import tariff from 20% to 50%, according to industry sources cited by Reuters.
- The government projects roughly 70,000 million pesos in extra 2026 revenue and says the policy protects 300,000–350,000 jobs, as major industry groups voice support, importers warn of supply-chain disruption across 17 sectors, and Banco de México watches potential inflation effects.