Mexico's tariff hammer is rising again. According to industry sources, the government is evaluating a new round of trade restrictions targeting non-FTA countries, with textiles, garments, and fabrics again on the priority list. This marks the third such move since 2026; the previous two rounds have already significantly raised costs for Chinese textile exports, with some apparel duties reaching 45%. For Chinese textile firms reliant on the Latin American market, this once-promising corridor is narrowing fast.
Escalating Tariffs: Textiles in the Crosshairs
Looking back at the first two rounds, Mexico's protectionism is no trial balloon. In January 2026, temporary tariffs were made permanent, covering 1,463 tariff lines at rates of 10%-50%. Textile duties were raised to 25%-35%, apparel up to 45%, affecting imports worth approximately $52 billion. In April of the same year, an additional 185 tariff lines faced 5%-35% duties, again targeting apparel, footwear, and textile accessories. After two rounds, the combined cost of Chinese textiles entering Mexico has risen markedly.
A third round is now under evaluation, clearly aimed at Asian supply-chain countries, while US, Canadian, and EU partners are exempt. Mexico is building a targeted trade barrier system, with labor-intensive textiles bearing the brunt. For SMEs relying on high-volume, low-margin orders, each new round further squeezes profitability.
Geopolitical and Domestic Drivers
Mexico's tightening of textile imports is not purely economic. Externally, the US has long worried about Asian goods transshipping through Mexico to enter North America duty-free under USMCA. With the agreement under annual review, Mexico is raising barriers to non-FTA goods to signal alignment with Washington and gain negotiating leverage. This external pressure translates directly into stricter import controls on textiles.
Domestically, President Sheinbaum's "Plan Mexico" prioritizes import substitution, and local industry associations have repeatedly urged restrictions on low-cost imports to protect factories and jobs. But there is an internal contradiction: Mexican garment makers heavily depend on Chinese fabrics and synthetic accessories, lacking a complete supply chain. Higher import duties on inputs could raise local production costs and undermine export competitiveness. This tension may temper the final policy, but the direction is unlikely to reverse.
Exporters Face Dual Squeeze on Profit and Compliance
If the third round is implemented, Chinese exporters will face multiple pressures. First, profit erosion: domestic fabric and basic apparel makers typically operate on 4%-8% margins. New tariffs force a choice between raising prices and losing customers, or absorbing costs and losing money. Intermediate goods like yarn and greige fabric are also affected—as Mexican garment factories face higher input costs, they will cut purchases or shift suppliers, increasing order-transfer risks.
Second, customs enforcement is tightening. Mexico has intensified origin checks, cracking down on false declarations, with higher inspection rates leading to port delays and seizures, raising logistics time and capital costs. Previously viable transshipment or gray-customs routes are now blocked, making compliance an unavoidable expense. Although the proposal is still under discussion, and final rates and lists may change, companies must prepare for the worst.