• President Sheinbaum announces potential tariffs on imports from countries lacking free trade agreements, including China.
  • The move is a response to a record trade deficit with China and mounting pressure from the United States.
  • The proposal, part of the "Plan México" industrial policy, aims to protect domestic manufacturers but risks inflation and supply chain disruptions.

Mexico is actively considering the imposition of new tariffs on imports from nations with which it does not have free trade agreements, a list that prominently includes China. President Claudia Sheinbaum confirmed the policy review, which is being framed as a necessary step to shield domestic industries from a flood of inexpensive foreign goods and to respond to international trade pressures.

The proposed tariffs would target a range of goods, including automobiles, textiles, and plastics, according to people familiar with the early draft of the 2026 budget proposal. While specific tariff rates have not been finalized and the scope remains subject to change, the measure is a central pillar of the government’s broader “Plan México” industrial strategy launched earlier this year. The goal is to reduce the nation's heavy reliance on imports from China and other Asian countries.

The policy shift comes as Mexico’s trade deficit with China hit a record high in the first half of 2025, creating a sense of urgency within the administration. “We must protect our national producers,” a government official said, speaking on condition of anonymity as the discussions are private. The president’s office did not immediately respond to a request for further comment on the tariff structure or implementation timeline.

The announcement also arrives amid intense and ongoing trade negotiations with the United States. Just weeks ago, the U.S. suspended a threat to levy a 30% tariff on all Mexican imports, pausing the measure for 90 days following a bilateral agreement. The Trump administration has been publicly pressuring Mexico to align its trade policies more closely with U.S. interests, particularly concerning Chinese goods flowing through Mexican supply chains.

Analysts suggest the Mexican tariff proposal serves a dual purpose: as a protective measure for local industry and as a strategic bargaining chip in the upcoming review of the United States-Mexico-Canada Agreement (USMCA). “This is a clear signal to Washington that Mexico is taking steps to address concerns about Chinese imports, potentially to secure more favorable terms in the USMCA talks,” said a trade policy analyst based in Mexico City.

However, the move is not without significant risk. Industry groups warn that while domestic manufacturers in sectors like textiles and basic manufacturing may benefit, companies reliant on Chinese components for complex products, especially in automotive and electronics, could face severe supply chain headwinds and increased production costs. Furthermore, economists caution that consumers will likely bear the brunt of the policy through higher prices for a wide array of goods, potentially fueling inflation.

The government has not indicated whether it anticipates retaliatory measures from China or other affected nations, but historical precedent suggests such a response is a distinct possibility, which could further complicate global trade dynamics. The final shape of the tariff proposal is expected to be revealed with the presentation of the 2026 budget later this year.