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Trade Strategies under Mexico's Tariff Policy: PROSEC & Rule 8

Written by Xu Yu | Feb 5, 2026 1:00:03 PM

On January 1, 2026, the Mexican government implemented a new round of tariff adjustments as part of new trade policy that has drawn significant international attention and is expected to reshape global trade dynamics.

 

Trade Policy in Mexico in 2026

The policy primarily targets 1,463 product categories imported from countries without free trade agreements (FTAs) with Mexico, imposing tariff increases ranging from 5% to 50%. Asian economies (including China,India, and South Korea) are mainly affected. For instance, import tariffs on Chinese-made automobiles have surged from 20% to 50%, while cross-border e-commerce goods now face tariffs as high as 36%.

 

 

Although scheduled to remain in effect for one year (through December 31st, 2026) the policy's implications for supply chain restructuring will likely extend well beyond this timeframe. In response, Mexico's existing trade facilitation mechanisms, particularly the PROSEC program and Rule 8, offer viable solutions for qualifying industries. These instruments provide critical tariff relief and supply chain optimization capabilities, effectively mitigating the cost pressures introduced by the new tariff regime. 

 

Summarized Tariff Rates, Mexico 2026

See the entire official tariff schedule.

Product Category Key Subcategories / Representative Products Import Tariff Rate (%) Notes
Cosmetics & Personal Care Perfumes, lipsticks, eye makeup, shampoos, toothpaste, shaving products, bath salts, etc. 25–36 Lipsticks: 36%; toothpaste: 30%; most other items: 25%
Plastic Products Pipes, films, containers, packaging materials, furniture components, consumer goods (e.g., buckets, food containers) 5–35 Raw materials (e.g., PE/PP pellets): 5–7%; finished goods (e.g., bottles, storage bins): 25–35%
Textile Yarns & Fibers Cotton, wool, synthetic fibers, silk yarns and staple fibers 25–36 Premium wool yarns: up to 36%; majority: 25%
Woven & Knit Fabrics Cotton fabrics, polyester textiles, blended fabrics, knitted fabrics, printed/dyed materials 25–35 Predominantly 25% or 35%; premium fabrics (e.g., fine woolens): 36%
Apparel & Finished Garments Tops, trousers, outerwear, underwear, sportswear, children's wear 25–45 Standard garments: mostly 35%; silk scarves/ties: 45%; select wool/handcrafted items: 25%
Footwear Athletic shoes, leather footwear, safety boots, sandals 35 Uniform rate across all footwear categories
Ferrous Metals & Steel Products Steel plates, pipes, rebar, rails, stainless steel products, scrap steel 20–50 Majority: 35%; thin-gauge steel sheets (<3mm): up to 50%; rails: 20%
Aluminum Products Aluminum ingots, sheets, electrical conductors, aerospace-grade aluminum alloys 5–35 High-purity electrical-grade aluminum (≥99.5%): 10%; standard aluminum products: 35%
Paper & Paperboard Products Printing paper, packaging paperboard, tissue paper, envelopes, notebooks 25–35 Predominantly 25% or 35%; select specialty papers: 30%
Furniture Metal/wood/plastic office furniture, kitchen/bedroom furnishings, seating 25–35 Metal office furniture: 35%; wooden furniture: mostly 25%
Motor Vehicles (Complete) Passenger vehicles (gasoline, diesel, electric) 50 Uniform 50% rate across all passenger vehicle types
Automotive Components Bumpers, brake pads, airbags, engine parts, lighting assemblies 7–36 Majority: 25%; specialized components (e.g., tractor parts): 36%; select structural parts: 7%
Household Appliances & Consumer Electronics Microwave ovens, irons, washing machines, refrigerators, vacuum cleaners 25–35 Predominantly 25% or 35%; small appliances (e.g., microwaves): 30%
Toys & Juvenile Products Plastic toys, electronic toys, dolls, puzzles, strollers 30 Uniform 30% rate across all categories
Home Goods & Housewares Glassware, ceramic sanitaryware, bathroom fixtures, plastic tableware 25–36 Ceramic sanitary fixtures (e.g., toilets): 35%; glassware: mostly 25%; select items: 36%
Luggage & Leather Goods Suitcases, handbags, belts, pet leashes 25 Uniform 25% rate across all categories

 

The PROSEC Program in Mexico

PROSEC (Programa de Promoción Sectorial, or Sectoral Promotion Program) is a strategic industrial policy established by Mexico under the framework of the United States–Mexico–Canada Agreement (USMCA). Its core objective is to enhance the global competitiveness of domestic manufacturing by reducing tariffs on imported intermediate goods and production inputs.

 

24 Sectors of the PROSEC Program 

Electrical Industry Electronics Industry Furniture Industry Toys, Recreational Toys & Sports Industry
Footwear Industry Mining & Metals Industry Capital Goods Industry Photographic Industry
Agricultural Machinery Industry Miscellaneous Industries Chemical Industry Rubber & Plastic Goods Industry
Steel Industry Pharmaceutical Products, Medications & Medical Equipment Industry Transport Industry (except Cars) Paper & Cardboard Industry
Wood Industry Leather Industry Car & Auto Parts Industry Textile & Clothing Industry
Chocolate, Candies & Similar Industry Coffee Industry Food Industry Fertilizer Industry

 

It is worth noting that in December 2024, Mexico's Ministry of Economy revised PROSEC eligibility criteria for certain textile categories, excluding specific products from preferential treatment. For qualifying enterprises, the program enables preferential import duty rates of 0% to 5%—substantially lower than standard most-favored-nation (MFN) tariffs.

Administration oft he PROSEC program falls under the purview of Mexico's Ministry of Economy. Applicants must demonstrate that imported materials will be used exclusively for domestic manufacturing and must comply with industry-specific technical standards.

 

 

 

Mexico's Rule 8

Importantly, Rule 8 cannot be applied independently; it functions as a complementary mechanism within Mexico's trade policy under the PROSEC framework. This structural design enhances its practical applicability, particularly for manufacturing enterprises and their upstream and downstream supply chain partners, offering a clear and executable policy pathway.

Legally grounded in Chapter 98.02 of Mexico's Harmonized Tariff Schedule (which governs "special procedures") Rule 8 permits qualified manufacturing entities to obtain import licenses from the Ministry of Economy and thereby secure exemptions from standard import duties. For example, under the new tariff regime, an automotive manufacturer that qualifies for PROSEC may leverage Rule 8 to apply for an import license, significantly reducing tariffs on imported components and overall production costs. Empirical data indicates that businesses utilizing this mechanism can achieve supply chain cost reductions of 15% to 30%, with particularly pronounced benefits in the automotive and electronics sectors. Enterprises should note, however, that certain sensitive materials are excluded from Rule 8 coverage and require advance compliance assessment.

 

 

Rule 8 is particularly relevant under the 2026 tariff regime. With MFN tariffs reaching up to 50% on certain automotive and industrial inputs, Rule 8 provides a legal and structured pathway to mitigate cost exposure while maintaining compliance with Mexico's trade policy.

 

 

Practical Implementation for Businesses

From an operational standpoint, PROSEC and Rule 8 form an integrated "framework and tool" system. PROSEC defines the eligible industrial sectors, while Rule 8 provides the concrete procedural pathway—creating a cohesive and actionable trade policy framework.

Amid evolving tariff conditions, this dual mechanism not only alleviates near-term cost pressures but also supports long-term competitiveness through localized production strategies.

 

 

 

Mexico's latest tariff adjustments reflect its strategic positioning amid global supply chain realignment. The PROSEC program and Rule 8 collectively offer institutionalized solutions for businesses navigating this policy shift. Companies that thoroughly understand and strategically deploy these domestic trade facilitation tools can transform regulatory challenges into competitive advantages—easing immediate cost burdens while laying a solid foundation for sustained market presence in Mexico.

In an era of increasingly volatile trade policies and mounting regulatory complexity, enterprises must deepen their understanding of host-country policy instruments to maintain competitiveness. Critically, access to such policy benefits must be anchored in strict compliance practices—only then can businesses achieve resilient, sustainable growth.

 

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