FX.co ★ Mexico Weighs Higher Tariffs on China

Mexico is set to propose increased tariffs on Chinese goods as part of its 2026 budget plan, with the intention of protecting domestic industries from low-cost imports and addressing a longstanding request from U.S. President Donald Trump, according to a report by Bloomberg News. The proposed tariff increments are anticipated to impact sectors including automotive, textiles, and plastics, potentially affecting other Asian countries as well. Although the details have yet to be finalized, the draft proposal from President Claudia Sheinbaum's administration is expected to be submitted to Congress by September 8. This move comes on the heels of U.S. pressure earlier this year for Mexico to harmonize its tariffs with those imposed by the United States on China. Mexican authorities have since been considering a "Fortress North America" initiative aimed at reducing Chinese imports while reinforcing trade relationships among the U.S., Mexico, and Canada—a concept supported by U.S. Treasury Secretary Scott Bessent. Additionally, the increased tariffs would serve to enhance revenue as President Sheinbaum endeavors to reduce Mexico's budget deficit, which reached its highest level since the 1980s in 2024.