Mexico's Senate has approved new tariffs, impacting over 1,400 products from countries lacking a free trade agreement with Mexico. These measures, which President Claudia Sheinbaum states are intended to boost domestic production, are scheduled to take effect on January 1, 2026.
Tariff Details
- Levy: Up to 50% on various goods.
- Affected Products: Include metals, cars, clothing, and appliances.
- Affected Countries: Dozens of nations without free trade agreements with Mexico, such as China, Thailand, India, and Indonesia, will be subject to these tariffs.
Context of International Trade Relations
These tariff approvals occur while Mexico is engaged in negotiations with the United States regarding potential import duties. The Trump administration has indicated intentions to impose various tariffs on Mexico, including:
- Steel and Aluminum: Potential 50% duties.
- Fentanyl Flow: A 25% levy linked to efforts to curb the flow of the synthetic opioid into the U.S.
- Water Agreement: A recently proposed 5% tariff, citing Mexico's alleged non-compliance with an 80-year-old treaty concerning water allocation from Rio Grande tributaries. The U.S. has maintained for decades that Mexico has not met the terms of this agreement.
The United States is Mexico's largest trading partner. China previously issued a statement advising Mexico to consider its actions carefully before implementing tariffs.