Chinese cars to face tariff from Mexico

Admin

September 11, 2025
3 min read

Mexico plans to double its tariffs on Chinese cars in a bid to protect its local industry. The new tariffs will cover 1,463 product categories including steel, furniture, and electronics.

Authorities fear that as many as 320,000 jobs could be at risk due to cheap imports entering the market.

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Car production is vital to the Mexican economy. Officials say they have had enough of cheap Chinese cars entering the country. Even American brand Dodge has rebadged Chinese made vehicles including the Attitude saloon and Journey SUV.

Economy Secretary Marcelo Ebrard Casaubon said that the government is hoping to “protect Mexico’s strategic industries” by bringing in the tariffs. These will be aimed at products shipped in from countries that currently do not have a free trade agreement with Mexico, he said.

One of its biggest concerns is light-duty vehicles. Ebrard said that they are being sold at “prices below inventory” and gaining a large market share. This is seen by many as a clear reference to Chinese cars.

“The Mexican automotive industry accounts for 23 percent of national manufacturing, so we have to protect it,” he said, adding that car parts are also being imported at very low prices along with steel, and saying that the government needs to work to protect local jobs. Ebrard went on to say auto parts are also being imported at ultra-low prices and so is steel, so the government needs to step up to protect jobs.

In a Q&A session with the media, he said that vehicles imported from China and other Asian countries already face a 20% tariff. But because many enter the country at lower prices, that tariff will be raised to 50%.

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