Mexico’s latest budget proposal, submitted on September 9, 2025, has set off a wave of reactions both at home and abroad. The plan, unveiled by Mexico’s Ministry of Finance, introduces new tariffs on more than 1,400 imported products—primarily targeting countries with which Mexico does not have a free trade agreement. While China was not mentioned by name, the focus on Asian countries leaves little doubt about which region stands to be most affected.
Treasury Secretary Edgar Amador, presenting the proposal, emphasized that the tariffs would comply with World Trade Organization (WTO) guidelines. “The tariffs will be within the guidelines of the World Trade Organization and the Mexican government would be sensitive to any impacts on production or prices,” Amador stated, according to the Associated Press. He further assured that the government would carefully monitor the effects on domestic production and consumer prices, aiming to avoid any market shocks.
This move is part of President Claudia Sheinbaum’s broader strategy to strengthen Mexico’s domestic industries, reduce trade deficits, and promote national self-sufficiency. The administration has faced mounting pressure from the United States, led by President Donald Trump, to present a united North American front against China’s economic influence. According to Animal Político, Washington has threatened to expand 25% tariffs on certain Mexican products not covered by the United States-Mexico-Canada Agreement (USMCA).
Mexico’s approach is not entirely new. In December 2024, the government began imposing tariffs on specific imports such as textiles and ramped up efforts to seize counterfeit and pirated goods, many of which originate from Asia. Officials have described these measures as crucial for protecting national industries from what they see as unfair competition.
China, for its part, has made its displeasure clear. In August 2025, even before the formal announcement, Chinese government spokesman Guo Jiakun voiced strong opposition: “Mexico is China’s second-largest trading partner in Latin America, and China is Mexico’s third-largest export destination. China firmly opposes restrictions imposed on China under various pretexts and under coercion from others, which harm China’s legitimate rights and interests.” This statement, cited by both Cryptopolitan and the Associated Press, underscores the diplomatic tightrope Mexico is walking.
The Sheinbaum administration’s tariffs represent a balancing act between local and international interests. Domestically, the measures have garnered widespread support. With the governing party holding majorities in both chambers of Congress, the budget—and its import tax provisions—are expected to pass with little resistance. For many Mexicans, the tariffs are seen as a pledge to reduce dependency on imports and to foster a more self-reliant economy.
Amador reiterated the importance of prioritizing internal market strength. “The primary aim of the policy is to strengthen domestic consumption, protect Mexican industries, and reduce trade deficits,” he said, according to Animal Político. While acknowledging ongoing discussions with North American partners, he insisted that Mexico cannot ignore the need to bolster its own production and consumption.
The international context, however, is anything but simple. The United States, under Trump’s leadership, has been reasserting its own protectionist stance. Earlier this year, the U.S. reimposed tariffs on certain Mexican and Canadian goods, citing concerns over drug trafficking and demanding tougher enforcement from Mexico in exchange for trade relief. Trump granted Mexico a 90-day extension on some tariffs, but tied it to specific actions by the Sheinbaum administration.
One of the most contentious issues in the ongoing trade saga is the U.S. threat to impose a 17% tariff on fresh tomatoes from Mexico. The stakes are high: Mexico supplies roughly two-thirds of the tomatoes consumed in the United States. In response, President Sheinbaum has announced measures to support Mexican farmers and insisted that no other country could substitute Mexican tomatoes in the American market.
According to Cryptopolitan, the automotive sector has also been particularly affected by trade tensions, despite certain exemptions for USMCA-compliant goods. The United States’ willingness to reopen the USMCA for renegotiation has raised the specter of further confrontations between the neighboring countries. Mexico, for its part, has threatened to take robust countermeasures if a fair agreement cannot be reached.
China’s opposition to the new tariffs is rooted not only in economics but also in the broader geopolitical contest for influence in Latin America. As China’s trade presence in the region has grown, so too have the stakes for all parties involved. Guo Jiakun’s statement reflects Beijing’s view that Mexico’s actions are being shaped by U.S. pressure, rather than purely domestic considerations.
Still, the Sheinbaum government appears determined to chart its own course. The administration’s willingness to impose tariffs on Asian imports, despite the risk of diplomatic friction, suggests a commitment to protecting national interests—even if it means navigating choppy international waters.
For Mexican businesses and consumers, the coming months will be a period of adjustment. The government has promised to monitor the impact of the tariffs closely, adjusting as needed to prevent undue harm to domestic production or household budgets. Yet, the underlying message is clear: Mexico is intent on reducing its vulnerability to external shocks and on asserting greater control over its economic destiny.
With the 2026 budget proposal poised for likely approval, Mexico’s new trade policy stands as a bold statement of intent. Whether it will succeed in achieving its goals—strengthening local industries, reducing deficits, and balancing delicate international relationships—remains to be seen. But one thing is certain: Mexico’s economic and diplomatic calculations are now firmly in the global spotlight, with ramifications that will ripple far beyond its borders.
As the world watches, Mexico’s leaders are betting that a careful blend of protectionism and pragmatism will serve the country well in an era of shifting alliances and rising trade tensions.
