Mexico New Tariffs: Impact on US Supply Chains
Key takeaways
Mexico's new tariffs took effect on January 1, 2026 and raised the general import duty on roughly 1,460 tariff lines to rates between 5% and 50%.
The increases hit goods from countries without a trade agreement with Mexico, such as China, while USMCA-origin goods that meet the rules keep preferential treatment.
US supply chains feel the change mainly through Mexican plants that buy non-FTA inputs, which can raise the cost of goods later shipped back to the United States.
On the US side, the IEEPA tariff on Mexican goods ended after the Supreme Court ruling of February 20, 2026, and as of October 2026 a 10% Section 301 tariff applies to Mexican goods that do not enter duty free under USMCA.
Medical devices made in Mexico need FDA establishment registration, device listing and a US agent before they can be imported, in addition to a correct customs entry.
Mexico new tariffs are a set of higher import duties that Mexico applies to goods from countries it has no free trade agreement with. The main measure, a decree amending the tariff schedule of Mexico's General Import and Export Tax Law (LIGIE), took effect on January 1, 2026 and set duties between 5% and 50% on roughly 1,460 tariff lines, from steel and plastics to textiles, auto parts and packaging. Goods that qualify as originating under the USMCA or another Mexican trade agreement keep their preferential rates, so the increase does not simply raise the cost of everything shipped from the United States.
For US companies, the effect is indirect but real. A Mexican plant that buys inputs from China or another non-FTA country now pays more for them, and that cost can travel back across the border inside finished products. This guide covers what changed in Mexico as of October 2026, how it interacts with US tariffs on Mexican goods, how to ship in both directions, and how to reduce exposure. Two topics have their own pages on our site: the courier clearance rule is covered in our guide to Mexico rule 3.7.5 and courier customs clearance, and origin claims are covered in our guide to USMCA tariff relief for imports from Mexico.
What new tariffs has Mexico introduced?
Mexico has introduced higher general import tariffs of 5% to 50% on about 1,460 tariff lines, effective January 1, 2026, aimed at goods from countries without a trade agreement with Mexico. Congress approved the reform on December 10, 2025, and it was published in the Diario Oficial de la Federación on December 29, 2025. Most of the revised lines now carry 25% or 35%, and passenger vehicles reach 50%.
The decree changes the general (most favored nation) rate in Mexico's tariff. It does not name countries. In practice, imports from Mexico's trade agreement partners, including the United States and Canada under the USMCA, continue to use the preferential rate when the goods meet the agreement's origin rules and the importer has the right documentation. That leaves goods from non-FTA countries, such as China, India, Korea, Indonesia, Russia, Thailand and Turkey, paying the new general rate. The decree has no sunset date, and its fourth transitory article lets the Secretaría de Economía create specific mechanisms for imports from non-FTA countries to protect the supply of inputs.
Which sectors are covered
Reading the tariff lines in the decree, the increases fall mainly on these product groups:
Steel and iron products (chapters 72 and 73), mostly at 35%, and aluminum products (chapter 76), at 10% or 35%.
Textiles, apparel and footwear (chapters 50 to 64), mostly at 25% to 35%.
Plastics (chapter 39), including tubes, hoses, film, closures and other plastic articles, at rates from 5% to 35%.
Paper and paperboard packaging such as cartons, boxes and bags (chapter 48), mostly at 25%.
Vehicles and auto parts (chapter 87), with passenger vehicles at 50%.
Cosmetics, soaps and toiletries (chapters 33 and 34), appliances, furniture, toys and glass.
For healthcare supply chains, the list matters more for packaging and components than for medicines. We found no chapter 30 pharmaceutical lines in the decree, and the only chapter 90 lines are two automotive instruments. Some healthcare-adjacent items do appear, for example surgical towels at 25%, plastic tubing and closures, and paper cartons. Do not assume your product is out of scope because it is used in healthcare. Check its exact eight-digit Mexican tariff fraction and its NICO with a Mexican customs broker.
Earlier and later decrees
The January 2026 reform builds on earlier temporary measures. A decree published in the DOF on April 23, 2026 notes that an April 2024 decree set temporary tariffs of 5% to 50% on 544 lines and that a December 2024 decree set 35% on 138 apparel lines and 15% on 17 textile lines until April 23, 2026. The April 2026 decree then set tariffs of 5% to 35% on 185 lines (chemicals, cosmetics, paper, textiles, steel, aluminum products, auto parts, electrical material and others) and made certain steel lines duty free under the sectoral promotion programs (PROSEC). It entered into force the day after publication. The same decree states that goods originating in a country with which Mexico has a trade agreement keep the preferential treatment of that agreement when they meet its requirements.
How do Mexico's tariffs affect US supply chains?
Mexico's tariffs affect US supply chains mainly through Mexican factories and distributors that depend on inputs from non-FTA countries. When those inputs cost 25% or 35% more to import, the cost of Mexican-made goods can rise, even if the finished product later enters the United States duty free. US companies feel this in supplier price increases, renegotiated contracts and pressure to change where components come from.
The Mexico tariffs impact on supply chain decisions shows up in four common situations:
Contract manufacturing in Mexico. A maquiladora assembling medical consumables with Chinese resin, film or steel parts now pays more for those inputs unless a relief program applies.
US exports that are not US origin. Goods shipped from a US warehouse are not automatically US-origin goods. A product made in Asia and resold from Texas to Mexico pays the general rate if it does not qualify under an agreement.
Packaging and secondary materials. Cartons, plastic closures and tubing used to pack kits in Mexico can be covered, which affects landed cost even when the core product is not.
Distribution in Mexico. US companies that sell into Mexico through local distributors may see price pressure on products or accessories sourced outside FTA countries.
For US-origin goods that qualify under the USMCA, the direct impact of the new Mexican rates is limited. The bigger question for those goods is often on the US side, where tariff rules on Mexican imports changed several times in 2026.
US-Mexico tariffs and trade regulations as of October 2026
US-Mexico tariffs and trade regulations have shifted quickly this year. The table below summarizes the main layers as of October 2026. Confirm every rate for your product and entry date with your licensed customs broker, because rules change through proclamations and Federal Register notices.
Measure | Who applies it | What it covers | Status as of October 2026 |
|---|---|---|---|
LIGIE tariff reform | Mexico | General import rates of 5% to 50% on about 1,460 lines, mainly hitting non-FTA goods | In force since January 1, 2026, no sunset date |
April 2026 LIGIE and PROSEC decree | Mexico | 5% to 35% on 185 lines, duty-free PROSEC treatment for certain steel lines | In force since April 24, 2026 |
IEEPA tariff on Mexican goods | United States | Additional duties on goods of Mexico that did not qualify for USMCA treatment | Ended after the Supreme Court ruling of February 20, 2026 |
Section 122 surcharge | United States | 10% on most imports, USMCA duty-free goods of Mexico excluded | Expired July 24, 2026 |
Section 301 forced labor action | United States | 10% on products of Mexico, with exemptions for USMCA duty-free entries and listed products | In force since July 24, 2026 |
The sources for the US rows are official. In Learning Resources, Inc. v. Trump, the Supreme Court held that IEEPA does not authorize the President to impose tariffs. Proclamation 11012 then imposed a 10% temporary surcharge for 150 days and excluded goods of Mexico entered free of duty under the USMCA. Its replacement is the USTR Section 301 action announced on July 23, 2026. The final notice sets a 10% tariff on products of Mexico and states that it does not apply to products of Mexico entered free of duty under the USMCA. It also excludes articles subject to Section 232 tariffs and a list of products that includes many pharmaceutical headings. Pharmaceuticals carry separate US rules, explained in our guide to US pharma tariffs and their impact on costs, supply and trade.
What is cross border shipping?
Cross border shipping is moving goods from one country into a neighboring one, usually by truck, rail or air across a land border, with customs clearance on both sides. Between the United States and Mexico it means a US export filing where required, a Mexican import entry (pedimento) prepared by a Mexican customs broker, and the reverse for northbound freight. Most US-Mexico freight crosses by truck, and the shipment changes paperwork owners at the border even when the cargo stays on the same trailer.
How do you ship from the US to Mexico?
You ship from the US to Mexico by classifying the goods under Mexico's tariff, confirming which permits apply, appointing a Mexican importer and customs broker, filing US export data when required, and choosing a courier, truck or air service that matches the value and regulatory status of the goods. Shipping to Mexico from US locations is routine for many products, but healthcare goods need more planning because Mexico regulates them closely.
Here is how to ship to Mexico in practice:
Classify the product under Mexico's tariff fraction and NICO, and check whether the new general rate or a preferential USMCA rate applies.
Check non-tariff rules. Medical devices generally need COFEPRIS sanitary registration or a COFEPRIS sanitary import permit for devices without registration, for example for research, maquila, laboratory testing or donation.
Identify the importer of record in Mexico. Formal entries need a Mexican importer with an RFC tax ID and, where required, registration in the importers' register. Our glossary explains the importer of record role.
File US export data. Electronic Export Information is generally needed when a Schedule B line is valued over $2,500 or the goods need an export license, as described in the Census Bureau AES guidance. See our page on EEI filings.
Prepare the documents. A commercial invoice with a specific description, real value, origin and tariff code, a packing list, the transport document and any origin certification or permit.
Pick the clearance route. Low-value courier shipments can use Mexico's simplified procedure under rule 3.7.5, but that route excludes many regulated healthcare goods and has its own rates. Larger or regulated shipments need a formal entry through a Mexican broker.
The cross border shipping regulations for Mexico add a practical point: goods without a precise description, or with a zero or nominal value, are a common reason for holds at Mexican customs. Temperature-sensitive goods also need a plan for border dwell time, since inspections can add hours or days.
How do you ship medical devices from Mexico to the US?
To ship medical devices from Mexico to the US, the Mexican manufacturer must be registered with FDA, the devices must be listed, a US agent must be designated, and the shipment must be entered through US Customs with accurate FDA data and the correct tariff and origin claim. Under 21 CFR 807.40, any foreign establishment that manufactures or processes a device imported into the United States must register and list its devices and name one US agent who resides or keeps a place of business in the United States.
Shipping medical devices from Mexico involves these checks before the truck leaves the plant:
FDA status. Confirm establishment registration and device listing are current. According to FDA's who must register, list and pay the fee page, foreign manufacturers and contract manufacturers register and list, and the US initial importer registers but does not list.
Marketing authorization. Have the 510(k) number, PMA number or exemption basis ready, because the entry data must match what FDA has on file.
Origin and tariff treatment. Decide whether the device qualifies for USMCA duty-free entry. A device that does not qualify, or is entered without a valid claim, can fall under the 10% Section 301 tariff on products of Mexico on top of the normal duty rate.
Section 232 watch. The Commerce Department opened a Section 232 investigation into personal protective equipment, medical consumables and medical equipment in September 2025. As of October 2026 we found no tariff proclamation from it in the Federal Register. Ask your broker to confirm before each new contract or price list.
Handling. Sterile, temperature-sensitive or high-value devices need packaging and monitoring that survive a border inspection.
For packaging, labeling and documentation detail, see our guide to shipping regulations for medical devices and the guide to shipping medical devices internationally.
How can companies reduce tariff exposure when manufacturing in Mexico?
Companies can reduce tariff exposure when manufacturing in Mexico by mapping every input by origin and tariff fraction, shifting non-FTA inputs to FTA sources where it is practical, using Mexican relief programs such as IMMEX and PROSEC where they apply, and making sure finished goods meet USMCA origin rules for duty-free entry into the United States. The goal is to know, line by line, where a 25% or 35% duty could enter the bill of materials.
Map manufacturing in Mexico tariff exposure
Start with the bill of materials. For each component, record the supplier, the country of origin, the Mexican tariff fraction, the rate before and after January 1, 2026, and the annual volume. Then run the same exercise for the finished product on the US side. This turns manufacturing in Mexico tariff exposure into a number you can manage rather than a general risk. Update landed cost models and supply contracts so that it is clear who absorbs a duty change, and keep supplier origin declarations on file.
Use the programs that exist
The IMMEX program lets maquiladoras import inputs temporarily for processing and re-export, and PROSEC sectoral programs can lower duties on listed inputs for registered producers. These programs do not remove every cost. Trade law advisers point out that USMCA duty-deferral rules can limit the relief on non-FTA inputs when the finished goods go to the United States or Canada. Whether PROSEC, the Eighth Rule (Regla Octava) or an IMMEX scheme helps your product is a question for your Mexican customs broker and trade counsel, with the decree text in front of them. Watch also for any mechanism the Secretaría de Economía issues under the reform's fourth transitory article.
Protect US duty-free entry
On the US side, the most valuable step is a sound USMCA claim. Goods of Mexico entered free of duty under the agreement avoid the 10% Section 301 tariff. That requires correct origin analysis, a certification of origin and records you can produce in an audit, all explained in our USMCA tariff relief guide. If you paid IEEPA duties in 2025 or early 2026, ask your broker about refund status for those entries.
What to re-confirm before your next shipment
Because these rules changed several times in 2026, re-confirm three points with the right people before quoting a price or booking freight. With your Mexican customs broker, confirm the current rate for your exact tariff fraction and NICO and whether any program applies. With your US customs broker, confirm the current US treatment of your Mexican-origin goods, including any Section 301 exemption and the status of Section 232 actions. With your regulatory team, confirm FDA registration, listing and COFEPRIS status for regulated products. For background on how duties are calculated, see our overview of tariffs and duties for healthcare.
Mercury's licensed US customs brokers handle entry filing, documentation and US customs bonds for life science importers, and the customs brokerage team can review how the current US rules apply to medical devices and supplies coming from Mexico.
