Mexico‘s New Tariffs Pose Challenge to Chinese Auto Exports, But Competitive pricing May Buffer Impact
Mexico City – A proposed tariff hike on imported vehicles, particularly those from asia, is poised to impact the competitiveness of Chinese automakers in Mexico, thier largest export market. The draft bill, submitted to the Mexican Congress, would raise tariffs on cars to 50 percent, more than doubling the current 20 percent rate, and impose tariffs ranging from 10 to 50 percent on auto parts.
Mexico’s move, wich includes levies on roughly 1,400 products from countries without existing trade deals, comes as Chinese car exports to Mexico have surged.In the first seven months of 2025, shipments from China rose 25.5 percent year-on-year to 272,100 vehicles, according to data from Yiche.com, an online Chinese auto marketplace.
While the increased tariffs will undoubtedly affect China’s auto sector, industry analysts suggest competitive pricing and established global operations may mitigate the full impact.
“Thes tariff increases will inevitably affect [Asian exports’] competitiveness,” said Cui Dongshu, secretary general of the China Passenger Car Association. He also noted Mexico’s role as a significant production base for both automobiles and auto parts, further amplifying the potential consequences of the tariff changes.
The proposed tariffs are a response to pressure from the United States, with the potential to influence trade dynamics in the region. Mexico’s Economy Minister, Marcelo Ebrard, announced the bill’s submission to Congress on Wednesday.