Houston, 11 September (Argus) — Mexico will raise tariffs on Asia-origin vehicles to 50pc next year, saying it is aiming to strengthen domestic production and counteract the effects of tariffs imposed by the US.
Current auto import tariffs stand at 15-20pc. Tariffs on auto parts will rise to 10-50pc from the current range of 0-35pc.
Mexican auto imports come primarily from China, but the list of countries reviewed includes India, Indonesia, Russia, South Korea, Thailand and Turkey. More than 18pc of all cars sold in Mexico were manufactured in China in January-August, while Chinese-brand sales made up 8pc of the market, according to the Mexican Association of Automotive Dealers.
The tariffs come as part of a larger review of more than 1,400 imports from countries with which Mexico does not have a trade agreement during budgetary planning for 2026, finance minister Edgar Amador Zamora said in a budget presentation on 9 September. The proposal will be sent to Congress for approval early next year.
Mexico’s move is similar to Brazil’s recent decision to bring forward a tariff hike for imported EVs, which mostly affects Chinese automakers.
Imported electric vehicles will be subject to a unified 35pc tariff from July 2026. Brazil now imposes a 25pc tariff on fully electric models and a duty of up to 30pc for hybrid vehicles manufactured abroad.
Brazilian auto industry association Anfavea had repeatedly called for protection measures against Chinese automakers, which now accounts for 10pc of all new vehicles sold in the country.
Anfavea accused Chinese carmakers such as BYD and Great Wall Motors to have “unfairly entered” Brazil’s auto market by selling cars at “artificially low prices”, a claim that BYD rejected.
Brazil is BYD’s largest market outside of China and home to the carmaker’s first factory in the western hemisphere.
By Marialuisa Rincon and Pedro Consoli
