Mexico Tariffs on Chinese Cars may rise to 50% under new bill aimed at protecting strategic industries and aligning with U.S. trade concerns

Mexico Tariffs on Chinese Cars are set to rise sharply under a new government proposal designed to protect strategic industries and appease growing trade concerns from the United States.

Also read: Trump vows high tariffs on Mexico, Canada, and China to combat border issues

In a bold move, Mexico has submitted a bill to Congress that would raise import duties on light vehicles from China to 50%, up from the current 15-20%. Auto parts from China could also see tariffs between 10% and 50%.

The initiative comes as President Claudia Sheinbaum faces pressure from Washington to prevent Mexico from becoming a backdoor for Chinese products to enter the U.S. market tariff-free under the USMCA trade deal.

The White House has accused Chinese producers of exploiting Mexico’s position in the pact to reroute goods northward.

The proposed Mexico Tariffs on Chinese Cars are widely seen as a response to these allegations, as well as a strategic move to shield domestic manufacturing.

China strongly opposed the move. “China firmly opposes any coercion,” said a Foreign Ministry spokesperson on Thursday, adding that the action undermines China’s “legitimate rights and interests.”

Despite diplomatic tensions, Sheinbaum’s administration emphasized the domestic angle.

The Mexican economy ministry stated that the measure would protect 325,000 jobs across 19 industrial sectors and spur thousands of new positions by encouraging local production over Asian imports.

Mexico recently surpassed China as the United States’ largest trading partner, with over 80% of its exports going to its northern neighbor.

The Latin American country exports nearly 3 million vehicles annually to the U.S., many assembled by giants like General Motors, Ford, Volkswagen, and Toyota.

The bill also targets other non-trade-agreement countries, including South Korea, India, Indonesia, Russia, Thailand, and Turkey, proposing higher duties across the board.

If passed — and with Sheinbaum’s party holding a majority in Congress, it likely will — the Mexico Tariffs on Chinese Cars could shift trade dynamics significantly, potentially worsening tensions with Beijing while deepening alignment with Washington.