In the fall of 2025, the Mexican government submitted a bill to Congress that would significantly increase tariffs on imports from countries without a free trade agreement (FTA). The bill would affect about 1,400 items, including automobiles, steel, electronics, textiles, and toys, with tariffs likely to be raised from an earlier 15-20 percent to a maximum of 50 percent. The affected countries include not only China, but also Indonesia, the Philippines, and Thailand, seen as part of Mexico’s “U.S.-centric trade diplomacy,” which prioritizes commercial relations with Washington.
In the background of Mexico’s action lies the threat of additional tariffs from the Trump administration. The United States has taken issue with a “loophole” for imports from countries outside the United States-Mexico-Canada Agreement (USMCA) to enter the American market via USMCA member countries.
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