Mexico is moving toward raising tariffs on a wide range of Chinese goods, including automobiles, textiles, and plastics, as part of its 2026 budget proposal. The measure, which could later extend to other Asian exporters, is designed to shield domestic industries from low-cost, state-backed competition while aligning Mexico more closely with U.S. trade priorities under President Trump.

The policy reflects President Claudia Sheinbaum’s vision of a stronger, more self-contained North American market. By tightening controls on Chinese imports, her administration aims to prevent Mexico from being used as a pathway for goods to enter the United States, a concern repeatedly raised in Washington. The approach has drawn support from U.S. officials and underscores the growing emphasis on regional cooperation within the USMCA framework.

If carried out, the tariff hikes may bolster Mexico’s manufacturing sector but could also raise costs for consumers and complicate ties with Asian economies. While the shift is expected to deepen integration with the United States and Canada, it risks heightening trade frictions with Beijing. China has already expressed its disapproval, with Foreign Ministry spokesperson Guo Jiakun criticizing the proposal as the result of outside pressure and insisting that countries should act independently in trade matters.

Mexico’s decision marks a turning point in its trade strategy, one that could reshape economic relations across the Americas and reverberate through global supply chains.

Source: Reuters