According to Reuters, Mexico’s lower house has officially approved a bill imposing a tax of up to 50% on select imported goods by 2026, with 281 votes in favor, 24 against, and 149 abstentions.
Goods from certain Asian countries will face import taxes of up to 50% in Mexico.
The legislation aims to boost domestic production and address trade imbalances, despite opposition from local business groups and affected nations. However, it still requires Senate approval.
Mexico plans to impose or raise tariffs—primarily up to 35% in 2026—on items like automobiles, auto parts, textiles, apparel, plastics, and steel from China and other Asian countries without trade agreements with Mexico, including India, South Korea, Thailand, and Indonesia.
The Ministry of Economy proposed this measure in September but faced significant pushback.
President Claudia Sheinbaum’s administration asserts the move will strengthen domestic manufacturing and rectify trade deficits with China and several Asian nations.
Analysts suggest Mexico’s action may also aim to appease the U.S. ahead of upcoming negotiations on the United States-Mexico-Canada Agreement (USMCA).
The government anticipates generating $3.76 billion in additional revenue next year through this bill, reducing the budget deficit.
Vietnamese exports stand to gain significantly from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Mexico’s high import tariffs on goods from China and other Asian nations without Free Trade Agreements (FTAs) present a major opportunity for Vietnam, leveraging its strategic advantage under the CPTPP.
Vietnam’s key exports to Mexico currently include electronics, footwear, textiles, machinery, and seafood.
Under the new legislation, these products will gain a competitive edge. While major competitors like China face tariffs of up to 35% or 50% on textiles and footwear, Vietnamese goods will enjoy preferential rates, even reaching 0% as per CPTPP commitments.
This price disparity will incentivize Mexican importers to shift sourcing from taxed countries to Vietnam.
Thus, Vietnam has a golden opportunity to expand its market share, increase exports, and solidify its position as a reliable and strategic supplier in the North American supply chain.
