Mexico’s Minister of Economy, Marcelo Ebrard, announced on Wednesday that tariffs on cars from China and other Asian countries will be raised from 20% to 50%. This move comes as Mexico recently became the largest buyer of Chinese-made cars in the first half of this year, and the 50% tariff increase could potentially have a significant impact on China’s car exports to Mexico.
During an event on Wednesday, Minister Ebrard addressed the issue of import tariffs on China, stating, “Tariffs have already been imposed (on China). What we need to do is raise tariffs to the highest allowable level.”
Ebrard emphasized that the 50% tariff aligns with the regulations of the World Trade Organization and is aimed at protecting employment in Mexico. Chinese cars have been entering the Mexican market at prices “below our reference prices.”
The Trump administration has been urging Mexico to increase tariffs on Chinese imports to curb the flow of cheap Chinese goods entering the United States through Mexico. Following this pressure, Mexican officials put forward the concept of “Fortress North America,” aimed at not only restricting imports of Chinese goods but also strengthening trade and manufacturing cooperation among the United States, Mexico, and Canada.
As of April 2025, the United States implemented a 25% tariff on imported cars. Mexican-produced cars that meet the rules of origin under the US-Mexico-Canada Agreement can be exempted from tariffs; otherwise, they will face a 25% tariff.
Prior to taking office, President Trump vowed to impose any necessary tariffs to prevent Chinese cars from flowing into the United States via Mexico.
Previously, Mexican President Claudia Sainzbaum mentioned that she is considering imposing tariffs on countries with which Mexico has not reached a trade agreement as part of the “Mexico Plan” aimed at promoting local manufacturing.
In the first half of this year, Mexico emerged as the largest buyer of Chinese-made cars.
According to statistics from the China Association of Automobile Manufacturers, in the first half of 2025, the top three export destinations for Chinese cars were Mexico, the United Arab Emirates, and Russia, with export volumes of 234,500, 214,300, and 171,000 vehicles respectively. Mexico saw a 30.7% year-on-year increase, the UAE experienced a 58.5% growth, while Russia plummeted by 59.2%.