Mexico’s government intends to impose new tariffs on imports from China as part of the 2026 budget plan it will send to Congress by 8 September, according to people familiar with the draft cited by Bloomberg. The duties would cover products such as cars, textiles and plastics, and could later be widened to goods from other Asian countries. President Claudia Sheinbaum’s administration views the measure as a way to protect domestic manufacturers from subsidised competition and to bolster revenue after last year’s fiscal deficit hit its widest level since the 1980s. The policy would also answer repeated calls from U.S. President Donald Trump for Mexico to curb the flow of inexpensive Chinese goods into North America. Specific tariff rates have not been finalised and could still change before the proposal is filed, the sources said. Approval appears likely because Sheinbaum’s ruling coalition controls a two-thirds majority in both legislative chambers, limiting the scope for amendments once the draft reaches lawmakers. Beijing criticised the reported plan, with China’s Foreign Ministry saying it “strongly opposes” new restrictions but expects Mexico to handle the issue “properly” and maintain an independent trade policy. The prospective move underscores the widening global fallout from Washington’s trade confrontation with Beijing.