Mexico’s upper house approved new tariff measures on Wednesday, targeting imports from China and several other Asian nations with duties of up to 50% starting in 2026. The move, which sparked criticism from both business groups and foreign governments, is designed to reinforce domestic manufacturing sectors.
The legislation, which previously passed in the lower chamber, applies higher or new tariffs to products such as automobiles, auto parts, textiles, apparel, plastics, and steel imported from countries lacking free trade agreements with Mexico—including China, India, South Korea, Thailand, and Indonesia. Most affected goods will face tariffs up to 35%.
With respect to Thailand, Mexico represents a secondary export destination. During the first nine months of 2025, Thai exports to Mexico were valued at $4.568 billion, comprising 1.6% of Thailand’s total export value.
The main Thai export products to Mexico are automobiles, equipment, and components; computer equipment and components; facsimile machines, telephones, equipment, and components; electrical transformers and components; and machinery and machinery components.
The Senate passed the bill with 76 votes in favor, 5 opposed, and 35 abstentions, despite concerns expressed by domestic business leaders and Chinese officials.
Compared to an earlier version that faltered in the lower house last autumn, the measure trimmed duties on about two-thirds of the roughly 1,400 targeted tariff categories—among them textiles, apparel, steel goods, auto components, plastics, and footwear.
According to analysts and private sector representatives, Mexico is seeking to curry favor with the United States in advance of the upcoming review of the United States-Mexico-Canada Agreement (USMCA). The new tariffs are also projected to generate $3.76 billion in additional government revenue in 2026, supporting efforts to narrow the nation’s fiscal deficit.
Earlier in 2025, Mexico raised tariffs on a range of Chinese imports—a measure that analysts noted was intended partly to align more closely with policy preferences in Washington.
