According to reports from multiple Mexican media outlets on September 13, Mexico’s new tariff policy has sparked international repercussions. The Mexican government has announced plans to impose new tariffs on automobiles, auto parts, and other products imported from Asian countries—such as China, South Korea, and India—that lack trade agreements with Mexico.

The policy, championed by President Claudia Sheinbaum, requires congressional approval by November 15. It covers over 1,400 goods, including vehicles, auto components, steel, aluminum, and household appliances, with tariff rates ranging from 10% to 50%. The new tariffs will take effect 30 days after announcement and are expected to drastically reshape Mexico’s automotive market.

While over 30% of Mexico’s domestic auto sales are locally produced, imports from China have accounted for approximately 20% since early 2025. General Motors is projected to be the hardest hit, as 63% of its vehicles sold in Mexico are manufactured in Chinese plants. Ford, BMW, and Kia also rely heavily on Chinese imports. Models affected include Ford’s compact SUV Territory, BMW’s mid-size electric SUV iX3, and Kia’s compact SUVs Seltos and Sonet, all imported from China.

The Volkswagen compact sedan Virtus and compact SUV Taigun are imported from India; the Toyota subcompact hatchback Yaris and Mitsubishi’s pickup truck L200 are imported from Thailand; Suzuki’s subcompact MPV Ertiga and Toyota’s subcompact MPV Avanza are imported from Indonesia. These models may be directly affected. While the tariff-induced price increases could burden Mexican consumers, they are seen as beneficial for domestic production and long-term local investment in Mexico. China immediately urged Mexico to reconsider and warned of suspending investments and projects in sectors ranging from automobiles to electronics.

The South Korean government adopted a more cautious stance, stating it would collaborate with companies like Hyundai, Kia, Samsung, and LG to mitigate risks. Others pointed out that the tariffs would also impact exports of critical automotive components. Vehicles imported from India, Thailand, and Indonesia account for about 2%-6% of Mexico’s total auto sales, compelling Mexico to reassess the system.

The Mexican Automotive Industry Association (AMIA) expressed support for the policy, arguing it promotes fair competition and protects jobs. However, a chamber representing Chinese businesses warned that the tariffs on imported electric vehicles could trigger inflationary risks and potentially hinder Mexico’s energy transition.