On December 10, 2025, the Mexican Senate approved the “Decree Amending Various Tariff Lines of the Mexican General Import and Export Tax Law” (hereinafter, the “Reform”), which had previously been proposed and approved by the Mexican House of Representatives. The Reform will enter into force on January 1, 2026.

The Reform modifies the tariff rates applicable to 1,463 Mexican tariff lines, covering both finished goods and production inputs. It forms part of Mexico’s broader economic strategy known as “Plan México,” the primary objective of which, according to Mexico’s Department of Economy, is to promote import substitution, increase domestic content in supply chains, strengthen the competitiveness of Mexican production, and protect local industry from imports originating in countries with which Mexico does not have trade agreements.

The main change introduced by the Reform is an increase in Mexican import tariffs applicable to certain tariff lines deemed strategic. In general terms:

• Mexican import tariffs are increased, primarily on goods that compete directly with domestic production in Mexico.
• Export tariffs remain exempt, meaning the measure does not affect exports from Mexico.
• The Reform focuses on goods imported into Mexico from countries that do not have trade agreements with Mexico, seeking to prevent practices that create unfair competitive pressures on the national industry.

The increases are not uniform and vary by product and sector. The new import tariffs generally range from 10% to 35%, although in specific cases they may be higher or lower depending on the merchandise.

In sectors such as textiles, apparel, footwear, plastic products, and steel, tariff rates are concentrated between 25% and 35%, representing a significant increase.

The Reform targets 17 strategic industrial sectors in Mexico, including the following:

Sector	Number of Tariff Lines Modified
Textiles	418
Apparel	308
Steel	268
Plastics	79
Auto parts	74
Paper and Cardboard	50
Footwear	49
Aluminium	38
Home Appliances	30
Toys	30
Light Vehicles	13

These sectors were selected due to the growth of imports in recent years, as well as job losses and increased pressure on Mexican domestic production. The Mexican government has stated that the measure is not intended to harm international trade relations or target any specific country. However, in practical terms, the greatest impact will be on imports into Mexico from countries with which Mexico does not have Free Trade Agreements, since a significant portion of the modified tariff lines corresponds to goods currently imported from those markets.

In this context, potentially affected countries include, among others, China, South Korea, India, Indonesia, Thailand, Brazil, Turkey, Russia, Ukraine, and Taiwan, which together represent a substantial share of imports into Mexico in the sectors covered by the Reform.

Within Mexico, the impact will primarily affect companies that import goods classified under the modified tariff lines, as well as companies that rely on suppliers located in countries without trade agreements with Mexico. In both cases, the impact will affect importers of finished goods and importers of inputs used in production processes in Mexico.

For these companies, the Reform may result in higher import costs in Mexico, prompting a review of pricing, margins, and commercial contracts. In addition, correct Mexican tariff classification will become increasingly important, and companies may need to assess alternative sourcing options, including suppliers located in countries with Mexican trade agreements or domestic suppliers.

Companies are advised to identify whether their imported products fall within the modified tariff lines, as the Reform will enter into force on January 1, 2026, leaving a limited period to assess potential impacts, implement operational adjustments, and ensure compliance with Mexican foreign trade regulations.