Economy Politics Country 2025-11-06T01:08:44+00:00

Mexico: Doubts over Tariff Reform Approval, 70 Billion Peso Revenue Expected

Doubts grow in the Mexican Congress over a government tariff reform. The initiative to raise tariffs on goods from countries without trade deals, mainly China, may not advance in the current legislative period. The government expects 70 billion pesos in additional revenue for 2026.


Mexico: Doubts over Tariff Reform Approval, 70 Billion Peso Revenue Expected

Doubts are growing in the Mexican Congress regarding the approval of the tariff reform promoted by the federal government. The government expects to earn an additional 70 billion pesos in 2026 from this policy. The initiative, presented by President Claudia Sheinbaum along with the 2026 Economic Package, proposes to amend the Tariff of the Law on General Import and Export Taxes (LIGIE) to increase tariffs on 1,463 tariff lines from countries without trade agreements with Mexico. This measure aims to protect strategic sectors such as automotive, textile, footwear, steel, plastics, and furniture, while also boosting revenue in a context of tight public finances. China would be the most affected country by import volume, although the measure would also reach South Korea, India, Indonesia, Russia, Thailand, and Turkey. "I believe that the vote and approval of these tariffs will take place in the current legislative period, which expires on December 15," stated the legislator. However, the Secretariat of Economy responded to LPO with Salim's statements, while inside San Lázaro there is still doubt about its consideration. Since it was not presented with the economic package, it was left out. In Congress, it is recognized that the Executive Branch could resume the matter through a decree published in the Official Gazette of the Federation. "We have already approved the income law, which is necessary for the country to function. Since it was not presented with the economic package, it was left out," they stated. However, hours later, El Economista published statements from PAN deputy Miguel Ángel Salim, president of that commission, ensuring that the vote could be finalized before the period closes. "It is on hold, on standby," confirmed a source from San Lázaro. Legislators consulted by LPO assure that the initiative to raise taxes on imports from Asia may not advance in this ordinary period. This administrative procedure also responds to a request from the United States, which prioritizes a decree signed by the President of Mexico as a commitment to toughen rules on Asian imports without a trade treaty, particularly those from China. Although it was contemplated that the LIGIE Tariff would be dealt with after the approval of the Economic Package, the legislative debate was put into doubt due to conflicting reports on the progress of the initiative. El Financiero reported that the Economy, Trade and Competitiveness Commission had approved an extension until August 2027 to issue an opinion on the project, which in practice would leave it out of the current Legislature. "There are talks with the countries and these are issues that must be handled properly," said the same source. "It can be resolved with a decree, it has always been resolved that way," they stated.