Mexico is preparing to raise tariffs on Chinese imports, targeting autos in its 2026 budget proposal. The move aims to protect domestic manufacturers and address U.S. President Donald Trump’s push for tougher trade measures. Chinese car exports to Mexico have surged, making the country China's largest auto export market in H1 2025, surpassing Russia. Current tariffs on Chinese vehicles reach up to 20%, far below Washington’s 100% duty on Chinese EVs. The plan, due by September 8, underscores Mexico’s effort to align with U.S. trade policy while supporting its local auto industry.