Many are wondering why a developing economy, itself a target of US President Donald Trump’s tariffs, will slap similar tariffs on another developing economy also hit by Trump tariffs?

Mexico’s Senate has approved sweeping tariff increases on a broad list of imported products from countries with which Mexico does not have free trade agreements, including India, China, South Korea, Thailand, Indonesia and Vietnam. The new tariff structure, set to take effect from January 1, 2026, will raise duties to a maximum of 50% on certain goods, with most products facing increases capped around 35%.

According to the Mexican government, the rationale is rooted in industrial protection and economic policy. President Claudia Sheinbaum’s administration argues that higher tariffs are necessary to shield domestic manufacturing and jobs from what it views as excessive import competition, particularly in sectors such as autos, textiles, steel, plastics, footwear and other consumer and intermediate goods. Officials also frame the tariffs as a means to correct trade distortions and reduce import dependence, allowing Mexican producers a more level playing field against Asian imports.

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