Chinese Cars in Mexico: 20% Cheaper Despite Tariffs

Mexico City — Chinese vehicles imported into Mexico are priced 20 percent lower than other brands in the national market, despite already being subject to a 20 percent import tariff. The potential for a further increase in these tariffs is under consideration by the Mexican government as part of its 2026 budget proposal.

Eric Ramírez, Director of Urban Science, warned that, as is the case with tariffs in the United States, the cost of imposing higher tariffs on Chinese goods in Mexico would ultimately be absorbed by the final consumer. However, Ramírez acknowledged that such a measure would level the competitive playing field in the Mexican market.

“There is currently a 20 percent tariff because there is no trade agreement between Mexico and China. What is being sought, especially at the North American level, is to adjust this tariff so that it reflects more real prices. Canada already made an adjustment a few months ago, raising tariffs to nearly 100 percent. In Mexico’s case, the possibility is being explored,” said Ramírez.

The government’s plan to increase tariffs on China is intended to protect domestic manufacturers from subsidized Chinese competition and to respond to a long-standing demand from U.S. President Donald Trump. The increase, which is expected to affect imports such as automobiles, textiles, and plastics, is detailed in the draft revenue proposal from the administration of President Claudia Sheinbaum, which is scheduled to be sent to Congress by September 8.

Ramírez pointed out that a price differential of between 15 and 20 percent currently exists between Chinese vehicles and their equivalents in the Mexican market. “The effect on the consumer is the same as what is happening now in the U.S. with vehicles from other countries, where eventually, with a tariff, the final price will be affected to some extent,” he added.

Specific tariff rates were not immediately clear, and the plan could change, according to informed sources who asked not to be identified.

The Mexican market for Chinese automobiles has surged in recent years. In 2025, Mexico became the world’s top destination for vehicles manufactured in China, surpassing Russia, according to the China Passenger Car Association.

Although Chinese vehicles face a 20 percent tariff in Mexico, this is significantly lower than the measures in the United States, where President Joe Biden imposed a 100 percent tariff on Chinese electric vehicles and prohibited most imports that contain software developed in China.