The tariff changes in Mexico’s Prosec program came about following pressure from the U.S. government. This pressure aims to prevent incentives for imports into North America, particularly from Asia.
On April 23, 2026, the Mexican Presidency issued a decree imposing tariffs ranging from 5% to 35% on imports of goods across 185 tariff lines. Among others, the measure covers key sectors such as chemicals, textiles, steel (steel and aluminum), automotive (auto parts), and consumer goods (furniture and bicycles). Additionally, the adjustment seeks to protect domestic industry, mitigate distortions in the local market, and strengthen regional supply chains within the framework of global competition.
This tariff increase applies to countries with which Mexico has no relevant trade agreements.
Tariff changes in Mexico’s Prosec program
The official stance justifies this tariff increase as a trade defense mechanism. Its purpose is to restore market equity in the face of global practices that distort trade, thereby protecting the most vulnerable domestic sectors. Ultimately, the measure aims to stimulate investment in local industry and boost the domestic market.
According to the consulting firm Ansley, these new changes align with the Mexican government’s goal of import substitution. They also aim to increase domestic content in Mexican supply chains.
Similarly, tariffs on certain specific inputs for some industries have been reduced.
The publication also incorporates amendments to Article 5 of the Prosec decree. It includes 11 tariff subheadings in the steel sector that are exempt from tariffs (of which 5 include specific provisions for certain products where the exemption does not apply) for the Prosec program covering electrical and electronic devices and the automotive and auto parts industries.
In accordance with the USMCA Implementation Act, USTR Director Jamieson Greer submitted a report to the House Ways and Means Committee. Additionally, he submitted another report to the Senate Finance Committee on December 16 and 17, respectively, regarding the operation of the USMCA, prior to the joint review scheduled for July 1, 2026.
There, Greer stated that the USMCA Joint Review will depend on the successful resolution of a non-exhaustive list of issues regarding Mexico. This list included “Mexican policies that promote the use of third-country content and erode U.S. supply chains.”
Concerns About China
Economic and national security concerns regarding China, coupled with supply shortages during the COVID-19 crisis, have brought the United States’ reliance on foreign manufacturing into sharp focus. This situation has exposed the vulnerabilities of global supply chains, sparking a debate about the country’s technological leadership and industrial competitiveness.
In response, President Donald Trump’s administration reoriented its industrial policy toward reshoring. To revive installed capacity, private investment, and domestic employment, the government implemented strategic tariffs, tax incentives, sectoral deregulation, and direct pressure on global supply chains.