Mexico City – President Claudia Sheinbaum’s administration is preparing to include higher tariffs on Chinese imports in the 2026 Budget, which will be submitted to Congress before September 8. The measure is aimed at protecting domestic industries from an influx of low-cost products.
The plan focuses on sectors such as automobiles, textiles, and plastics, all of which face strong competition from Chinese manufacturers. The proposal is part of a broader revenue package designed to strengthen Mexican industry amid international economic uncertainty.
Official data shows that Mexico imported more than $51.4 billion in goods from China last year, nearly 20% of the country’s totalparticularly small and medium-sized enterprises, at a disadvantage.
While details of the tariff increases have not been disclosed, officials involved in shaping the Economic Package said the final version could be adjusted through negotiations inside the government. The initiative may eventually extend to other Asian countries, but China remains the main focus.
The National Association of Importers and Exporters of the Mexican Republic has said that higher tariffs could offer relief to domestic producers competing with cheaper imports. For the Sheinbaum administration, the plan aligns with Plan Mexico, a national strategy to develop industrial parks, expand productive infrastructure, and attract investment.
The debate over tariffs comes as Mexico has already taken steps to shield certain industries. Last week, the government announced an immediate suspension on finished footwear imports, citing unfair competition that has hurt local shoemakers. “Finished footwear can no longer be imported into Mexico temporarily, because it is damaging that industry,” Economy Secretary Marcelo Ebrard said, noting the measure is intended to safeguard jobs and strengthen domestic production.
If Congress approves the proposal, tariffs could reshape Mexico’s trade balance and provide new momentum for local manufacturing, though the full impact will depend on the final details of the 2026 Budget.