Chinese car imports to Mexico will be subject to a 50% tariff, up from the current rate of 20%, if a decree proposed by President Claudia Sheinbaum is approved.

In 2024, Mexico recorded a historic deficit in car trade with China. The negative balance reached $5.068 billion, the highest level in this segment.

That same year, Mexican car exports to the Chinese market fell to $262 million. This was the lowest figure since 2010 and confirmed a downward trend.

In contrast, sales of Chinese cars in Mexico set a record. They totaled $5.332 billion in 2024. The figure more than doubled that recorded in 2022 and consolidated China as the main external supplier.

50% tariff

The measure is part of a national program that applies the maximum tariff authorized by the World Trade Organization. In total, it covers 1,463 tariff items linked to 17 strategic sectors.

With the changes, tariffs on car imports rise dramatically. They will rise to 50%, from the current range of 15 to 20%. At the same time, taxes on auto parts imports will rise to a range of 10 to 50%, compared to the previous range of 0 to 35%.

The adjustment marks a shift in Mexico’s trade policy. It also places the automotive and auto parts industry at the center of the strategy to protect key sectors and strengthen domestic production.

China led global light vehicle production, with 23.4 million units in 2024.

Dumping practices

Light vehicle production in China continues to grow steadily. The upturn is explained by strong domestic demand, technological advances, and the boom in electric vehicles. With this combination, the country has consolidated its position as the world’s largest manufacturer. In 2024, it accounted for one-third of global production.

Faced with this scenario, Mexico is preparing a change in its trade policy. “I was asked if we are going to apply tariffs on vehicles from Asia, particularly China. I said yes. They already have a tariff. The tariff is 20%. Now, what are we going to do? We are going to raise it, which is allowed by the World Trade Organization, up to 50%,” explained Marcelo Ebrard, Mexico’s Secretary of Economy.

The foreign minister said the measure responds to a pricing problem. “Because the prices at which they are arriving in Mexico are below what we call reference prices,” he added.

He later explained the criteria in detail. “You have a reference price for each product. When a product arrives in your country below that price, if it is a single product, you conduct an anti-dumping investigation. A single product. But if there are many, what do you do? You modify your tariff. Because otherwise, the domestic industry is at a disadvantage. So, for that reason, we are taking that measure.”