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Home » Mexico Plans Tariffs of 50% on Chinese Cars, Steel, Textiles

Mexico Plans Tariffs of 50% on Chinese Cars, Steel, Textiles

SEVERAL MEN CLUSTER AROUND A SILVER CAR, ONE IN A WHITE SHIRT CROUCHING DOWN

Workers prepare an MG Motor Co. MG 3 hatchback at a dealership in Mexico City, Mexico, on Wednesday, Sept. 10, 2025. Photographer: Stephania Corpi/Bloomberg

September 11, 2025
Bloomberg

Mexico is looking to apply tariffs of as much as 50% on cars and auto parts, as well as steel and textiles from China and other countries with which it does not have a trade agreement, according to Economy Minister Marcelo Ebrard. 

Mexico’s current tariff on Chinese imported vehicles is about 20% and that will rise to 50%, Ebrard said on the sidelines of an event in the state of Mexico on September 10. 

“We are going to take it higher, which the World Trade Organization allows us to do, which is up to 50%. Why? Because the prices at which they are arriving in Mexico are below what we call reference prices,” he said. “The main objective is to protect jobs.”

Mexico has become the biggest destination for cars from China, much to the chagrin of its northern neighbor as President Donald Trump wages a trade war on China. The move to increase tariffs is aimed at protecting local industry, but it also serves to appease the U.S., Mexico’s largest trade partner.

The list of tariffs is included in a draft bill sent to congress on roughly 1,400 products that will apply to all countries with which Mexico does not have a trade deal such as South Korea, Thailand, India, Indonesia, Russia and Turkey. The addition of countries other than China also addresses the issue of China using other Asian nations to send cheap  Chinese imports via transshipments from those countries to escape tariffs.

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