Mexico’s Ministry of Finance submitted its 2026 budget proposal today. The proposal includes tariffs on countries that do not have trade agreements with the North American country. The tariffs target countries mainly from Asia.
Although China was not directly mentioned, the budget plan tariffs will primarily affect countries with no trade agreements with Mexico, most of which are from Asia. The Mexican Treasury Secretary Edgar Amador said the tariffs will follow World Trade Organization (WTO) guidelines. He added that the government would carefully evaluate potential impacts on production and consumer prices to avoid market disruptions.
Mexico’s tariffs target Asian countries
President Claudia Sheinbaum’s administration continues to face challenges in trade negotiations with the U.S. Trump administration amid the announcement. Washington threatened earlier this year to expand the 25% tariffs on some of Mexico’s products not covered by the free trade agreement between them and Canada. Edgar Amador, Treasury Secretary, acknowledged that the new proposal unfolds amid the discussion and future commercial conversations with the U.S. He, however, insisted that the primary aim of the policy is to strengthen domestic consumption, protect Mexican industries, and reduce trade deficits.
Mexico had already incorporated such measures in December last year. The government imposed tariffs on specific imports, such as textiles, and increased operations to seize counterfeit and pirated goods, many of which originated from Asia. Some officials described the measure as a way to safeguard national industries from unfair competition.
China strongly opposed the new proposal, which had been rumoured for months and prompted a formal response from the Asian country. Beijing responded in August before the official announcement of the proposal, when Guo Jiakun, a Chinese government spokesman, said the idea unfairly targeted Chinese products.
Sheinbaum’s administration tariffs represent a domestic and international balancing act. They present the local industries with a pledge to reduce dependency on imports and promote national self-sufficiency. The decision coincides with the U.S. demands to present a united front against Beijing.
The proposal is widely supported in the country and is expected to pass, with Mexico’s governing party holding a majority in both chambers. The popularity virtually guarantees approval of the 2026 budget and import tax provisions.
Amador urges local industries to prioritize self-reliance
Amador reiterated that his country cannot ignore the need to reinforce its internal market. He added that the tariff will enhance domestic production and consumption while balancing Mexico’s international obligations.
Cryptopolitan reported previously that the United States is preparing to reopen the United States-Mexico-Canada Agreement (USMCA), which could lead to a confrontation with its neighbors. Trump has already reimposed tariffs on the two countries, citing drug trafficking concerns. According to the report, the automotive industry is the most affected despite exemptions from USMCA-compliant goods.
Trump granted the North American country another 90-day extension on some tariffs, with demands directed at the Sheinbaum administration for more vigorous drug enforcement tied to trade relief. This follows Mexico’s threats to take strong measures if a fair agreement is not reached, following the U.S. threats to impose a 30% tariff on Mexican imports. The U.S. also planned to impose a 17% tariff on fresh tomatoes, which Mexico supplies to approximately two-thirds of U.S. consumption.
The Mexican President insisted that no other country could substitute Mexican tomatoes in the American market and announced measures to support farmers in mitigating tariff risks. Sheinbaum’s administration appears determined to pursue measures it views as necessary to protect its national economy.
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Source: https://www.cryptopolitan.com/mexico-submits-new-budget/
