Economy & Business - January 2026

Mexico's hefty new tariffs of up to 50% on imports from countries without free trade deals – especially China – took effect on 1 January, in a move primarily aimed at protecting domestic industries from the “dumping” of cheap goods, while aligning Mexico more closely with the trade priorities of the administration of US President Donald Trump. Although local manufacturers support the measures, which they say are essential to ensure their survival, the move has fuelled significant trade tensions with China, while Mexico’s export-oriented ‘maquiladora’ sector has warned about rising production costs.