Background

Press sources report that Mexico’s Senate and Chamber of Deputies have each approved a significant increase in duties on more than 1,300 products imported from the dozens of countries with which Mexico does not have a free trade agreement, including major suppliers like China, India, South Korea, Thailand, and Indonesia. This measure is part of a broader reform of Mexico’s customs law that in turn is believed to be linked, at least in part, to efforts to lower U.S. tariffs on imports from Mexico and to mollify U.S. concerns ahead of a review next year of the U.S.-Mexico-Canada Agreement.

The duty increases are expected to take effect Jan. 1, 2026. New duty rates will range from 5 to 50 percent depending on the product category, with those affected including automobiles and auto parts; textiles, apparel, and footwear; plastics and polymers; steel and other metals; electronics and appliances; furniture, toys, and consumer goods; paper, glass, and building materials; and leather goods and accessories. More than 300 products that were previously duty-free will now be subject to a duty.

While no official notice of the duty increases has yet been published, it is believe that IMMEX (maquiladora) companies will be excluded from them because they do not import products directly into Mexico.

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