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Mexico Moves to Raise Tariffs on China, Bolstering US Ties

Mexico aims to reduce reliance on Chinese imports and protect local producers by raising tariffs on cars, textiles, and plastics, with Chinese vehicle exports to Mexico exceeding 138,000 units in early 2025.

  • Mexico will raise tariffs on imports from China as part of its 2026 budget proposal due in September, targeting cars, textiles and plastics with likely approval from President Claudia Sheinbaum's coalition.
  • Faced with a budget gap that climbed to its highest level since the 1980s last year, Mexico's government seeks new revenue and aims to shield local producers from subsidized imports and reduce dependence on China.
  • Official customs data show Mexico took in more than 138,000 Chinese cars in early 2025, officials have raised textile tariffs to 35 percent and launched Plan Mexico to boost investment.
  • The United States has pushed hard for these changes, with President Donald Trump linking talks to fentanyl cooperation and U.S. Treasury Secretary Scott Bessent backing a 'North American fortress' to limit Chinese access; this tariff plan will intersect the USMCA review in mid-2026.
  • Raising tariffs signals Mexico's intent to stop the trade gap from widening unchecked, pairing trade restrictions with 'Plan Mexico' to boost industrial parks and attract investment.
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Claudia Sheinbaum's government plans to increase tariffs on China as part of its proposal for Budget 2026 to be presented in September, with the intention of protecting domestic companies from cheap imports and meeting a demand from President Donald Trump. Tariff increases, which are expected for imports such as automobiles, textiles and plastics, seek to protect local manufacturers from Chinese subsidized competition, according to three informe…

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Bloomberg broke the news in United States on Wednesday, August 27, 2025.
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