Mexico is weighing a 50% tariff on car imports from China, up from the current 15–20%, under a bill submitted to Congress as pressure mounts from the United States.
The proposal, unveiled Wednesday by the economy ministry, is designed to address U.S. President Donald Trump’s concerns that Chinese automakers are using Mexico as a back door to enter the U.S. market tariff-free under the USMCA trade pact.
Washington has repeatedly warned that Chinese producers are exploiting loopholes in the trilateral deal with the United States, Mexico, and Canada.
Beijing pushed back on Thursday, with foreign ministry spokesman Lin Jian saying China “firmly opposes any coercion”, while stressing its hope for continued positive ties with Mexico.
Mexican President Claudia Sheinbaum has also voiced concern about the influx of Chinese imports, arguing they are undermining domestic manufacturing. The bill outlines protection for 19 strategic industrial sectors, alongside tariffs on other non-FTA countries.
If passed, light vehicle imports from China would face a 50% duty, while auto parts would be taxed at rates between 10% and 50%. According to the ministry, the measure could protect 325,000 jobs and boost Mexico’s trade balance.
Mexico has become the United States’ largest trading partner since 2023, with over 80% of its exports heading north. Nearly three million vehicles are shipped annually to the U.S., including models assembled by Ford, GM, Volkswagen, Nissan, Toyota, and Honda in Mexico.
Two out of every ten vehicles sold in Mexico today are Chinese, with sales up 10% in 2024.
China, however, warned that any move undermining its “legitimate rights and interests” would be met with opposition.
Sheinbaum’s ruling party holds a majority in Congress, making passage of the bill likely.
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