Mexico Approves New Tariffs on Non-FTA Goods Amid International Trade Negotiations

The Mexican Senate has approved a new package of tariffs, set to impact over 1,400 products imported from countries that do not have a free trade agreement with Mexico. These measures, which President Claudia Sheinbaum stated are intended to boost domestic production, will impose duties of up to 50% on various goods and are scheduled to take effect on January 1, 2026. This development occurs as Mexico engages in ongoing trade discussions with the United States regarding potential import taxes, and following an advisory from China.

Tariff Details and Implementation

On Wednesday, the Mexican Senate approved the new tariffs, which will apply to a range of goods, including metals, automobiles, clothing, and appliances. The approved measures will impose tariffs of up to 50% on these products.

The tariffs are scheduled to become effective on January 1, 2026.

Affected Products and Countries

More than 1,400 products are included in the new tariff package. The measures specifically target imports from countries that do not hold a free trade agreement with Mexico. Nations such as China, Thailand, India, and Indonesia, among dozens of others, will be subject to these new duties.

President Claudia Sheinbaum's administration has stated that the primary intent behind these tariffs is to enhance domestic production within Mexico.

Broader International Trade Context

The approval of these tariffs takes place while Mexico is involved in negotiations with the United States concerning potential import duties. The United States is Mexico's largest trading partner.

Former President Donald Trump has previously proposed several tariffs against Mexico, including:

• A potential 50% duty on Mexican steel and aluminum.
• A 25% levy linked to efforts to curb the flow of the synthetic opioid fentanyl into the United States.
• A 5% tariff threat, citing Mexico's alleged violation of an 80-year-old treaty concerning water allocation from Rio Grande tributaries. The U.S. has consistently maintained that Mexico has not met the terms of this agreement, citing negative impacts on US farmers.

Prior to the approval of these tariffs, China's government had advised Mexico to "think carefully" about implementing such measures.