Mexico to raise tariffs on cars and Asian goods to 50% in 2026

Mexico announced on Wednesday that it will sharply increase import tariffs on cars and more than 1,400 other products from China and several Asian exporters, raising levies to as much as 50 percent in a bid officials say will protect Mexican industry and jobs. Economy Minister Marcelo Ebrard said the measures, included in the government’s 2026 budget proposal, target goods from countries that do not have free trade agreements with Mexico and would affect some $52 billion in imports, or roughly 8.6 percent of the country’s foreign purchases.

Ebrard told reporters the current tariff on Chinese cars, now about 20 percent, would be raised to the maximum allowed under World Trade Organization rules because many imports are entering Mexico at prices below so called reference prices. “Without a certain level of protection, you almost cannot compete,” he said. The increases would apply variably across sectors, with rates of 10 to 50 percent proposed for items including light vehicles, auto parts, steel, textiles, shoes, plastics, electronics, toys and furniture.

President Claudia Sheinbaum has framed the plan as both a way to spur domestic production and to offset the effects of tariffs...