⚠️ In force since January 1, 2026, with no transition period. If your landed-cost model is from 2025 and your goods come from China, India, South Korea, Brazil or Russia, odds are it’s already out of date.
What happened, in one line
On December 29, 2025, a decree published in the Federal Register (DOF) modified the import duty (IGI) on 1,463 tariff codes in Mexico’s tariff schedule (TIGIE), with rates between 5% and 50%. It applies only to goods originating in countries that have no free trade agreement in force with Mexico.
Does it apply to my goods?
It comes down to two things — and only two:
- Where the goods originate. Not where you shipped them from: where they are originating. Chinese goods sailing out of a Vietnamese port are still Chinese.
- Your tariff code. Only those 1,463 codes changed. The rest of the schedule stayed put.
If your goods originate in the United States, Canada, the European Union, Japan or any CPTPP partner, the decree doesn’t touch you — as long as you can prove origin with the corresponding certificate or declaration. Without that document you pay the general rate, treaty or no treaty.
The main countries affected
Mexico has no FTA in force with — among others — China, India, South Korea, Brazil and Russia. Those are the origins where the impact concentrates, and China is by far the biggest one by volume.
Sectors and rates
The package shields 17 domestic industries. The highest rates cluster here:
| Sector | IGI range |
|---|---|
| Auto parts and vehicles | 25% to 50% |
| Footwear | 25% to 35% |
| Textiles and apparel | up to 35% |
| Toys, school and office supplies | around 30% |
| Appliances, furniture and plastics | around 25% |
| Steel and aluminum, paper, cosmetics, glass | varies within the 5%–50% range |
The ranges are directional by sector: the actual rate is set per tariff code, not per product category. Two products you’d call “the same thing” can sit in different codes and pay different rates.
How it’s calculated (the hit is bigger than it looks)
The duty applies to the customs value — the goods plus additions like international freight and insurance — and then the 16% VAT is calculated on the sum that already includes the duty. In other words: every point of IGI drags VAT along with it.
| Scenario (customs value $500,000 MXN) | IGI | VAT | Total taxes |
|---|---|---|---|
| Before, at 10% IGI | $50,000 | $88,000 | $138,000 |
| Now, at 35% IGI | $175,000 | $108,000 | $283,000 |
| Difference | +$145,000 |
(Illustrative example, excluding the customs processing fee, DTA.) A 25-point jump in the duty doesn’t raise your cost 25%: it raises it 29% of customs value, because the VAT rides on top.
How long does this last?
The decree’s transitory articles set these rates to run through December 31, 2026. It’s billed as temporary — but “temporary” in tariff matters has meant renewal more than once. Plan your 2027 without taking either outcome for granted.
What to do if you got hit
- Look up your tariff code and its current rate. First step and non-negotiable: your product may not even be among the 1,463.
- Check that your classification is right. With higher rates, a misassigned code hurts far more. An audit is worth the effort.
- Evaluate alternative origins with a treaty. A supplier in Vietnam (CPTPP) or in the U.S. can end up cheaper than a cheaper Chinese one.
- Already buying from a treaty country? Demand the certificate of origin. It’s the document that separates 0% from 35%.
- Look at alternative regimes (IMMEX, Regla Octava, PROSEC) if you process or assemble in Mexico.
- Reprice what you sell. An importer who eats 25 points of duty without touching their margin is bleeding cash without noticing.
The mistake of the semester: quoting customers in 2026 off a 2025 cost model. We’ve seen operations where the gap ran to six figures.
Look up your tariff code in the duty calculator: it shows the current rate, the treaties you could tap and the regulations that apply. And if you want us to run your whole portfolio of codes against the decree, write to us — it’s the analysis people are asking for most this year.