Mexico considering tariff hikes on China under U.S. pressure…Will it join the 'North American fortress'?

The Mexican government is reportedly considering measures to raise tariffs on Chinese imports ahead of next year's budget announcement. Analysts say this is in response to demands from the Donald Trump administration.

Bloomberg reported on the 27th (local time), citing three anonymous officials, that Claudia Sheinbaum's government in Mexico is considering imposing additional tariffs on certain imported goods manufactured in China—such as automobiles, textiles, and plastics—during discussions on the 2026 budget, which is scheduled to be submitted to Congress by the 8th of next month. However, the specific additional tariff rates are not clear. They said the rates could still change.

Currently Mexico sets a tariff rate of up to 20% on Chinese-made automobiles. This is lower than U.S. tariffs on China. One official told Bloomberg, "(If Mexico raises tariffs on China) other Asian countries could also face tariff increases."

Bloomberg interpreted the measure as "aiming both to protect Mexican companies from low-priced imports and to satisfy President Trump's long-standing demands." The Trump administration has urged Mexico since the beginning of the year to raise tariffs on Chinese imports like the United States. In particular, President Trump has claimed that Chinese products are being rerouted through Mexico into the United States. In February, U.S. Treasury Secretary Scott Bessent mentioned the need to build a 'North American fortress'—meaning strengthened trilateral trade and manufacturing ties based on the United States–Mexico–Canada Agreement (USMCA).

Ning Sun, senior emerging-markets strategist at State Street Global Markets, analyzed, "This year China's exports to the Latin American region have increased significantly, helping to offset declines in exports to the U.S. market," and added, "Besides satisfying U.S. demands, Mexico must protect its domestic manufacturing base." He went on to say, "I expect Mexico to align its economic and foreign policies with the United States."

In addition, raising tariffs on China is expected to increase Mexico's tax revenue and help address the fiscal deficit. As of last year, Mexico's fiscal deficit had expanded to its largest size since the 1980s.

Reporter Han Gyeong-je