Mexico’s Textile Tariffs Signal Shift Toward Industrial Protection

Mexico’s government, led by President Claudia Sheinbaum and Economy Minister Marcelo Ebrard, has imposed new import tariffs of up to 35% on finished textile products and 15% on certain textile inputs.

The official decree, announced December 19, 2024, and effective until April 2026, aims to defend the domestic textile sector against surging low-cost imports, primarily from China.

The measure excludes countries with which Mexico has free trade agreements, such as the United States and Canada. The textile industry in Mexico has faced mounting pressure from foreign competition, particularly from Asian manufacturers.

From January to November 2024, Mexico imported $12.39 billion in textiles and apparel, a 14% increase over the previous year. China supplied $4.62 billion of that total, outpacing the United States, which provided $3.21 billion.

These imports have undercut Mexican producers, causing a loss of over 79,000 jobs in recent years and a 4.8% drop in the sector’s GDP contribution.

The government’s move also targets abuse of the IMMEX program, which previously allowed companies to import goods duty-free for manufacturing and re-export.

Mexico Tightens IMMEX Rules Amid Trade Tensions

Authorities found that nearly half of IMMEX companies did not meet export requirements, with many using the program to bring in finished goods for local sale and tax evasion.

Officials revoked licenses from several customs brokers and expanded the list of restricted items under IMMEX. The new tariffs are temporary and will expire in April 2026.

Officials argue that the policy will give the domestic industry time to recover and adapt. The government has also increased customs enforcement, conducting raids on stores selling counterfeit and illegally imported goods.

This protectionist approach responds to both domestic industry demands and rising regional trade tensions. U.S. officials, including President-elect Donald Trump, have accused Mexico of acting as a conduit for Chinese goods entering North America.

The Mexican government has positioned this policy as a defense of national industry and as reassurance to its North American partners ahead of the scheduled USMCA review in 2026.

Business leaders in Mexico’s textile sector support the tariffs, hoping they will stem job losses and restore competitiveness. However, the policy has already disrupted supply chains and raised costs for companies reliant on imported materials.

The government faces the challenge of balancing industrial protection with the risk of higher prices for consumers and possible trade friction with key partners.

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