In a major shift in trade policy, Mexico’s Senate approved tariffs of up to 50 per cent on a wide range of imports from India, China, and several other Asian nations. The new tariffs are set to take effect from January 2026 and primarily target countries that do not have existing free trade agreements with Mexico.

The Senate passed the bill with 76 votes in favour, five against, and 35 abstentions, covering approximately 1,400 tariff lines, including automobiles, auto parts, textiles, clothing, plastics, and steel. While some goods face the maximum 50 per cent duty, most imports are set to attract tariffs of up to 35 per cent, according to officials.

Mexico’s Minister of Economy, Raul Hernández, described the measure as necessary for national economic interests. He said, “These tariffs are designed to protect domestic industries, create jobs, and ensure that Mexican products remain competitive in global supply chains.” Hernández added that the tariff increase could generate nearly $3.76 billion in additional revenue for the government in 2026, helping to address fiscal deficits and support economic growth.

Hernández further emphasised the industrial benefits of the move, stating, “Our priority is to safeguard Mexican workers and industries that contribute to national growth. This policy will help balance trade and protect jobs while strengthening domestic manufacturing.” He added that the measure is also intended to encourage companies to rely more on local suppliers and reduce dependence on imported goods.

The announcement has generated mixed reactions within Mexico. Lawmakers from the ruling party welcomed the move, noting that it would “strengthen Mexican products in global supply chains” and protect domestic employment. However, opposition lawmakers warned that the tariffs could have negative consequences for consumers.

One opposition legislator said, “These tariffs may act as a hidden tax on consumers and increase costs for companies that rely on imported components, which could ultimately lead to higher prices for everyday products.”

The policy has also drawn criticism from foreign governments, particularly China. The Chinese Ministry of Commerce said, “We hope Mexico will correct its erroneous practices of unilateralism and protectionism as soon as possible.” The ministry added that it would monitor the implementation of the tariffs closely and evaluate their impact on bilateral trade relations.

Trade experts noted that the tariff hike is likely to reshape supply chains for affected industries, including automobiles, electronics, and textiles. Companies importing components from India, China, South Korea, Thailand, and Indonesia may face increased costs, prompting them to reconsider sourcing strategies or relocate parts of their production. Some analysts also view Mexico’s decision as a strategic signal to the United States, especially in the context of the upcoming review of the United States-Mexico-Canada Agreement (USMCA).

Officials defended the policy as a way to promote domestic industrial development and fiscal stability. Hernández stated, “These measures are necessary to ensure that Mexico can strengthen its economic foundation, protect jobs, and create an environment conducive to long-term industrial growth.”

Mexico’s Senate approved a significant tariff increase of up to 50 per cent on imports from India, China, and other Asian countries, effective January 2026. Officials said the move is aimed at protecting domestic industries, creating jobs, and generating government revenue. While it has been welcomed by local manufacturers, opposition parties and foreign governments, including China, have expressed concerns about its impact on trade, supply chains, and consumer prices. The decision marks a major shift in Mexico’s trade policy and could reshape regional and global trade patterns.