Mexico imposes tariffs of up to 50 per cent on Chinese goods as US trade pact review looms

Mexico's Senate has approved legislation imposing tariffs of up to 50 per cent on more than 1,400 products from Asian countries, primarily targeting Chinese imports to bolster domestic producers. President Claudia Sheinbaum defended the move, stating it supports the 'Plan Mexico' without harming the national economy. Beijing has criticised the duties as damaging to its interests.

On Thursday, December 12, 2025, Mexican President Claudia Sheinbaum defended her government's decision to impose new import tariffs at the National Palace, hours after the Senate approved legislation allowing duties of up to 50 per cent on more than 1,400 products from Asian countries. The measure is widely seen as targeting Chinese imports and comes as Mexico gears up for a review of the United States-Mexico-Canada Agreement (USMCA) next year.

'We want Plan Mexico to be fulfilled without causing a problem for the national economy, and within that framework Congress approved these tariffs,' Sheinbaum told reporters. She added: 'They are aimed at countries with which Mexico does not have a trade agreement. It is not about restricting trade between nations.'

Beijing has criticised the duties as harmful to its interests, viewing the move as part of a broader US pressure campaign. Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore, said: 'The US has concerns about China using Mexico as a back door to the US market. This clearly shows [Mexico] wants to show the US they're willing to clamp down.'

Analysts warn the tariffs could backfire. Alfredo Montufar-Helu from Ankura Consulting noted that Beijing might retaliate, seeing it as driven by US efforts to rally countries against China. Mexico's Economy Secretary Marcelo Ebrard stressed the measures protect domestic industries while preserving trade ties with the US and Canada.

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Trump threatens 25% tariff hike on South Korean goods over trade deal delays amid Coupang tensions

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U.S. President Donald Trump announced plans to raise tariffs on South Korean automobiles, pharmaceuticals, lumber and other goods from 15 percent to 25 percent, citing delays in Seoul's implementation of a bilateral trade deal. Republicans have linked the move to South Korea's probe into U.S.-listed e-commerce firm Coupang, though Trump later signaled room for negotiation. Seoul denies any connection and is dispatching officials for talks.

Following Senate approval of tariffs on over 1,400 Asian products amid USMCA review tensions, Mexico published a decree on December 29, 2025, in the Official Gazette detailing 5% to 50% duties on imports from non-free trade agreement countries like China, effective January 1, 2026. Affecting goods such as clothing, toys, shampoo, and auto parts, the measures aim to protect domestic industry and generate 70 billion pesos in revenue with minimal 0.2% inflation impact.

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Following Mexico's Senate approval of tariffs on Asian imports, Brazil has voiced concerns about potential disruptions to bilateral trade outside the protected automotive sector, urging dialogue to safeguard exports and investments.

US President Donald Trump announced on Monday (12) a 25% tariff on commercial transactions with countries doing business with Iran, effective immediately and impacting Brazil, a key exporter of agricultural products to Tehran. The decision comes amid violent protests in Iran, with 648 deaths recorded since December 28, escalating geopolitical tensions. The Brazilian government is awaiting details of the executive order to respond.

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US President Donald Trump has announced a 25% tariff on any country doing business with Iran, prompting strong opposition from China’s embassy in Washington, which called it “coercion” and “pressure”. Trump described the order as “final and conclusive”. The embassy criticized it as Washington’s “long-arm jurisdiction”.

In July 2026, Mexico, the United States, and Canada will begin the review of the United States-Mexico-Canada Agreement (USMCA), a pivotal process that could extend the deal for another 16 years or lead to prolonged negotiations. This evaluation occurs amid political tensions, with voices from Washington suggesting the U.S. could thrive without the treaty, and aligns with challenges in Mexico's automotive industry, which is seeing export declines and the influx of Chinese vehicles. Business leaders and experts stress the need for regional integration to sustain competitiveness.

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Alejandro Werner, director of the Georgetown Americas Institute, warned that Mexico will achieve a favorable T-MEC negotiation with the United States, but in a context of institutional weakness due to unilateral US tariff decisions. He recommended that the Mexican government focus its growth strategy on internal reforms such as competition, deregulation, and education. He also projected that inflation will not drop below 4% in the coming years due to wage pressures.

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