Mexico's protectionist machinery is turning once more. According to public industry information, the Mexican government is evaluating a new round of tariffs on imports from countries without free trade agreements, again targeting textiles, apparel fabrics, and garments. Two previous rounds have already raised costs significantly for Chinese textile exports to Mexico; if this round materializes, export firms with thin margins will face even harsher survival conditions.
Two Rounds of Tariffs Have Already Hit Chinese Textile Exports
In January 2026, Mexico converted temporary tariffs into a permanent regulation, imposing 10% to 50% duties on 1,463 tariff lines. Textile rates rose to 25% to 35%, with garments up to 45%, affecting imports worth $52 billion. In April of the same year, Mexico added another 185 tariff lines with 5% to 35% duties, covering apparel, footwear, and textile accessories. After two rounds, the combined tariff burden on Chinese textiles entering Mexico has risen significantly.
China is Mexico's largest source of textile and apparel imports, with exports reaching several billion dollars in 2024, accounting for over 30% of Mexico's imports in this category. Industry data show that after the tariffs, exports of some categories have declined noticeably, especially high-volume basic products with thin margins. For many small and medium-sized foreign trade firms focused on Latin America, this directly erodes their order volumes and profit space.
Dual Drivers Behind the Tariffs
Mexico's escalating textile import barriers are not an isolated event. Externally, the US has long worried about Asian textiles "washing origin" through Mexico and entering North America duty-free under the USMCA, thus pressuring Mexico to tighten controls. As the USMCA enters its annual review cycle, Mexico hopes to show cooperation by tightening import management, aiming for more favorable renewal terms.
Internally, the tariff policy serves the Sheinbaum government's "Plan Mexico" national revival strategy. The domestic textile industry wants to resist low-priced imports and protect jobs, with industry associations repeatedly urging stronger restrictions. The government intends to reduce textile imports through high tariffs, encouraging domestic investment and import substitution. However, Mexico's industrial chain is incomplete; many garment factories rely heavily on Chinese fabrics and chemical fiber accessories. Tariffs raise input costs, undermining the competitiveness of domestic garment producers. This internal contradiction may temper overly aggressive policies.
Three Real-World Impacts on Exporters
If a third round of tariffs is implemented, textile exporters will face multiple operational challenges. First, profit compression: domestic fabric and basic garment firms typically operate with margins of 4% to 8%. New tariffs would force them to either raise prices and lose customers or absorb costs and accept losses. Intermediate products like yarn and greige fabrics are equally affected; Mexican garment factories that buy Chinese greige fabrics will likely reduce purchases, shifting orders elsewhere.
Second, tighter customs scrutiny: beyond tariffs, Mexico has strengthened origin verification, cracking down on false declarations. Inspection rates have risen, increasing risks of port delays and cargo detention, raising logistics and financing costs. Past gray-channel routes are largely blocked, making compliance costs an irreversible trend.
However, the proposal is still under consultation, leaving room for adjustments in final rates and product lists. Firms still have a buffer window, but it won't last long; proactive planning is far better than reactive response.