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Master Plan Tariffs Tool

๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico vs ๐Ÿ‡จ๐Ÿ‡ณ China Tariffs โ€” Import Duty Comparison (2026)

๐Ÿ‡ฒ๐Ÿ‡ฝ

Mexico

Section 122 Rate10%
Section 301N/A
Section 232 (Metals)50%
Trade AgreementUSMCA
Trade Volume$779B
Base Effective Rate10%
๐Ÿ‡จ๐Ÿ‡ณ

China

Section 122 Rate12.5%
Section 30125-100%
Section 232 (Metals)50%
Trade AgreementNone
Trade Volume$575B
Base Effective Rate37.5%

Product Overlap

Both countries export these product categories to the US:

Auto parts

๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico Advantages

  • +Lower overall tariff rate (10% vs 37.5%)
  • +Trade agreement: USMCA (duty-free on qualifying goods)
  • +Not subject to Section 301 tariffs (China-specific)
  • +Higher US trade volume ($779B vs $575B)
  • +Unique export categories: Motor vehicles, Computers, Electrical machinery

๐Ÿ‡จ๐Ÿ‡ณ China Advantages

  • +Unique export categories: Electronics, Machinery, Furniture

Mexico and China are both significant US trading partners, but their tariff profiles differ in important ways that affect import costs.

Mexico has a lower effective tariff rate (10%) compared to China (37.5%), a difference of 27.5%.

Both countries export Auto parts to the United States, creating direct competition in these sectors.

In terms of trade volume, Mexico accounts for approximately $779B in bilateral trade with the US, exceeding China's $575B.

Both countries are subject to the Section 301 forced-labor tariff that replaced the flat 10% Section 122 rate on July 24, 2026 โ€” a two-tier 10%/12.5% duty on roughly 60 economies (about 99.4% of US imports by value), broader than the earlier 46-country proposal. Section 122 had itself replaced the IEEPA tariffs struck down by the Supreme Court. In August 2026, 25 states sued to block the forced-labor tariff, but CBP continues collecting it while the case proceeds.

Mexico's advantages include: Lower overall tariff rate (10% vs 37.5%); Trade agreement: USMCA (duty-free on qualifying goods); Not subject to Section 301 tariffs (China-specific); Higher US trade volume ($779B vs $575B); Unique export categories: Motor vehicles, Computers, Electrical machinery. China's advantages include: Unique export categories: Electronics, Machinery, Furniture.

For most product categories, Mexico currently offers lower import costs due to its tariff advantage. However, importers should consider factors beyond tariffs including shipping costs, lead times, quality standards, and supply chain reliability.

Frequently Asked Questions

Which has lower tariffs โ€” Mexico or China?
Mexico has a lower effective tariff rate (10% vs 37.5%). Section 301 tariffs on China account for much of the difference.
Should I switch sourcing from Mexico to China?
The decision depends on more than tariff rates. Consider total landed cost (shipping, insurance, customs fees), lead times, quality standards, minimum order quantities, and supply chain reliability. The 27.5% tariff difference is significant but not the only factor.
Do both Mexico and China face the same base tariff?
Yes, both countries are subject to the Section 301 forced-labor tariff that replaced the flat 10% Section 122 rate on July 24, 2026 โ€” a two-tier 10%/12.5% duty on roughly 60 economies, broader than the earlier 46-country proposal. Section 122 had itself replaced the variable IEEPA tariffs struck down by the Supreme Court. However, China faces additional Section 301 tariffs.
What products overlap between Mexico and China exports to the US?
Both countries export Auto parts to the US. Mexico has total bilateral trade of ~$779B while China has ~$575B.

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