The international shipping industry continues to feel the strain from trade wars, with Mexico imposing a 50% tariff. On December 10, Mexico’s congress agreed to hike tariffs on more than 1,400 imports from China and other Asian nations. Some of the goods subject to tax include automotive parts, steel, furniture, textiles, and plastics. Tariffs on most of these items, previously at 10%, will increase to 35%. Key manufactured goods, such as vehicles, will also see a larger 50% increase. After 75 votes in favor, five against, and 35 abstentions, the new bill will take place on January 1. These tariffs could significantly affect global trade, particularly the volume of goods imported into Mexico.
Why Is
Mexico Imposing A 50% Tariff?
Mexico is
imposing tariffs of up to 50% on imports for various reasons, including protecting
domestic industries. The country aims to reduce its dependence on imports from
countries without free trade agreements. Many of these importers are based in
Asian countries, including China, South Korea, Indonesia, India, and Thailand. Mexico’s
president, Claudia Sheinbaum, believes that these tariffs will bolster local
manufacturing and protect jobs in the country’s economy. She also stated that
the duties will reduce trade imbalances and safeguard industries that have declined
due to foreign competition. The tariffs will impact nearly 8% of Mexico’s
inbound trade and potentially result in over $2.5 billion in 2026.
The US has
imposed similar tariffs on imports over the last year to reduce trade
imbalances and bolster its economy. When he initially announced the levies, President
Trump stated that he wanted to “level the field” by reducing the US trade
deficit with its largest trading partners. Despite Mexico’s similar rationale,
there is a growing perception that the tariffs also aim to address US concerns
that China is expanding its presence in Mexico and using it as a backdoor to North
American supply Chains. Mexico’s largest trading partner is the US, and
analysts believe a goal is to appease the US. With the 2026 review of the USMCA
(US-Mexico-Canada Agreement) approaching, this will be a key topic of
discussion.
How Could
The Tariffs Affect Shipping?
Although the
tariffs could benefit Mexico’s economy, they could strain trade relations,
particularly with Asian countries. A Chinese commerce ministry official
immediately responded to the tax measures, calling them protectionist and harmful
to China-Mexico trade relations. Mexico already has a significant deficit with
China, importing nearly $62.1 in the first half of 2025. Similarly, Mexico exported
around $4.6 billion to China. China may seek other trading partners, as it did when
the US imposed tariffs. With China recently hitting a $1 trillion trade surplus,
the country could continue to shift exports away from North America.
Whether you
are importing into the US or exporting to a different country, tariffs can
affect the transportation process. While it should not halt cargo flow,
shippers should be aware of the impact and take steps to prevent disruptions. In
addition to staying current with news and regulations, speaking with freight
forwarders can be beneficial. Forwarders are third-party companies that act as
intermediaries between shippers and carriers, transporting goods on behalf of
the shipper. They do this by coordinating with a network of air, sea, and land
carriers. Forwarders also provide services like customs clearance, domestic
shipping, warehousing, and more. Reach A1 Worldwide Logistics at info@a1wwl.com or 305-425-9456 to talk to our
forwarders about transporting your shipment internationally.