Mexico Moves to Hike Tariffs on Chinese Cars Amid U.S. Pressure

Mexico has introduced a bill proposing a 50% tariff on car imports from China — up from the current 15–20% — in response to U.S. pressure to curb the flow of Chinese goods entering America through its southern neighbor.

The initiative, submitted to Congress by the government, aims to strengthen Mexico’s industrial sector while addressing U.S. President Donald Trump’s repeated calls for higher duties on Chinese exports. Washington has accused Chinese manufacturers of exploiting the U.S.-Mexico-Canada Agreement (USMCA) to bypass tariffs and ship goods into the U.S. duty-free.

Beijing condemned the move on Thursday, with its foreign ministry insisting that China “firmly opposes any coercion” and warning against measures that undermine its “legitimate rights and interests.”

Mexican President Claudia Sheinbaum has also voiced concerns about the impact of Chinese imports on domestic industries. The bill, unveiled by the economy ministry, argues that higher tariffs will safeguard 19 “strategic” sectors, protect an estimated 325,000 jobs, and boost local production to replace Asian imports. It also includes provisions to raise duties on imports from countries without trade agreements with Mexico, such as South Korea, India, Indonesia, Russia, Thailand, and Turkey.

If passed, light vehicle imports from China would face a 50% duty, while auto parts could be taxed between 10% and 50%. Currently, two out of every ten light vehicles sold in Mexico come from China, a market segment that grew by 10% last year.

Mexico, which surpassed China in 2023 as the United States’ largest trading partner, exports nearly three million vehicles annually to its northern neighbor. Major automakers, including General Motors, Ford, Volkswagen, Nissan, Honda, and Toyota, all operate factories in Mexico.

With Sheinbaum’s ruling party holding a congressional majority, the bill is expected to pass despite China’s objections, as Mexico seeks to “protect strategic industries and improve its trade balance.”