Mexican President Claudia Sheinbaum announces Plan Mexico (Image Credit: Bloomberg)
Mexican President Claudia Sheinbaum announced on Thursday that her administration is readying tariffs on Chinese imports and other countries without a free-trade agreement with Mexico. The step is part of her government's "Plan Mexico," aimed at supporting domestic industries amid responding to trade challenges triggered by US tariffs.
Speaking at her daily news conference, Sheinbaum said, “We are considering tariffs as part of Plan Mexico, which we’ve proposed since coming into office.” While she did not outline specific rates or a timeline, she confirmed that affected sectors would be disclosed in due course.
The threatened tariffs will affect a broad spectrum of goods, ranging from cars and clothing to plastics, and will be included in Mexico's 2026 budget proposal to be submitted later this month. The action is a direct reaction to US President Donald Trump's new policy to impose tariffs on certain Mexican imports, a policy that rekindled controversy over trade balances and economic sovereignty.
The levies would further align with a persistent request from Trump, who has been urging Mexico to protect itself against cheap Chinese imports as Washington's trade war against Beijing escalates. Targeting nations beyond formal pacts, Mexico looks to strengthen its alliance in the United States-Mexico-Canada Agreement (USMCA) and protect its industries.
Under USMCA, which took over from NAFTA in 2020, the three partners are required to review jointly after six years. Sheinbaum's steps precede that mark, setting Mexico up to demonstrate its dedication to safeguarding domestic businesses and addressing US worries.
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The tariff plan is included in the draft revenue proposal that is to be transmitted to Congress by September 8. Since Sheinbaum's party and its allies have two-thirds majorities in the two houses of Congress, the bill is bound to be approved without revision.
Though the president has not yet indicated which industries will be subject to levies, analysts indicate that industries that are already suffering from Asian competition like manufacturing and consumer goods are in greatest danger. For Sheinbaum, the dilemma is how to reconcile Mexico's international trade relationships with pressure from its largest trading partner, the United States.
If put into practice, Plan Mexico would represent one of the most dramatic changes in the nation's trade policy of recent years, denoting a stricter approach against non-trade-agreement countries while reasserting Mexico's strategic alignment with Washington.
