In one of the fastest-growing motorcycle markets in Latin America, a new trade policy is poised to reshape the competitive landscape. With both chambers of Mexico’s Congress having approved a major tariff reform bill, goods originating from countries without a free trade agreement with Mexico—including China, India, Thailand, Vietnam, and South Korea—will be subject to significantly higher import duties starting January 1, 2026. Motorcycles have been included in the high-tariff category, posing immediate and far-reaching implications for Chinese motorcycle manufacturers expanding rapidly in Mexico.

This reform covers more than 1,400 tariff lines, making it one of the largest structural adjustments to Mexico’s trade regime in recent years. According to the bill, the new duties apply to a wide range of products, from apparel and footwear to steel, aluminum, and automotive components. Tariff rates are divided into multiple tiers—generally 10%, 20%, 25%, 30%, and 35%, with the maximum reaching 50%. Motorcycle products fall into the “high-rate” bracket, with mainstream expectations centering around approximately 35%, while certain related components may face even higher rates. This means a complete motorcycle exported from China to Mexico will bear at least a 30%+ tariff cost, directly raising retail prices and undermining the core competitiveness of Chinese brands in the local market.

The legislative process moved swiftly. On December 10, 2025, Mexico’s Chamber of Deputies approved President Claudia Sheinbaum’s September proposal in just two hours, with 281 votes in favor, 24 against, and 149 abstentions. The next day, December 11, the Senate passed the bill with 76 votes in favor, 5 against, and 35 abstentions, subsequently forwarding it to the federal executive branch. In line with procedure, the bill is expected to complete its legislative formalities before December 15 and take effect in 2026.

For Chinese motorcycle companies, this is far more than a simple tariff adjustment—it represents a systemic shift that will impact pricing strategies, channel deployment, supply-chain organization, and even future regionalized manufacturing plans. As an important export destination, Mexico has long relied on the “cost-performance advantage” of Chinese motorcycles. With the new tariff hike, this strategy may no longer be sustainable, prompting companies to reassess their business models in Mexico and the broader Latin American region.

As the enforcement date approaches, China’s motorcycle industry is confronting an unprecedented challenge. A new round of strategic recalibration—centered on cost, competition, and long-term positioning—is set to unfold across the Mexican market.