Mexico Plans Tariff Hikes to Rebalance Trade, Raise $3.8B

Mexico plans to introduce a bill proposing import tariffs on sectors such as automotives and manufacturing to address trade imbalances and increase state revenue by about 70 billion pesos. The tariff adjustments will comply with international treaties and World Trade Organization rules, targeting countries without trade agreements with Mexico, with China a likely focus amid ongoing U.S. pressure to limit economic ties with Beijing. While details on specific tariff rates and timelines remain undisclosed, the measures are part of Mexico's 2026 budget proposal and aim to curb the use of Mexico as a transit point for Chinese goods to the U.S. market. Mexico already imposes tariffs on various Chinese products, including cars and manufactured goods, but analysts warn that further tariffs could exacerbate inflation pressures in Mexico. The U.S. remains Mexico's top trade partner, benefiting from a free trade agreement largely exempt from these tariffs. This reform signals Mexico's effort to rebalance trade while navigating geopolitical and economic pressures from both the U.S. and China.