With a new decree signed by President Claudia Sheinbaum, Mexico introduced tariffs ranging from 10 percent to 50 percent on 1,371 products across a wide range of industries, including automotive and steel for countries which lack a trade agreement with Mexico, according to local media reports.
The decree will take effect 30 days after its publication in the Official Gazette (DOF). Once in force, it will remain valid until December 31, 2026.
With tariff rates reaching up to 50 percent, the move is designed to strengthen national industries, protect employment, and promote fairer market competition.
According to President Sheinbaum, the tariff reform aims to:
- Protect domestic industries in vulnerable situations.
- Create fair competition by reducing distortive external practices.
- Strengthen employment, ensuring stable, well-paid jobs.
- Encourage regional and sustainable development.
The decree’s justification is that years of reliance on global supply chains weakened Mexico’s production base and increased its vulnerability to external shocks. It also notes that trade liberalization, while expanding markets, did not always translate into greater technological capacity or higher national content in exports. For this reason, the government now aims to shift production back to Mexico, strengthening domestic supply chains and ensuring that Mexican workers play a larger role in the country’s industrial development.
