Mexico's 50% tariff on Chinese-made cars fell sharply in the first month of 2026, according to data from China's General Administration of Customs (GACC). In January, imports of Chinese cars fell by 45.3% compared to the same month the previous year. The Mexican Congress approved the tariffs, which aim to protect Mexican industry and jobs, late last year. China's Commerce Ministry said that Mexico’s new and increased tariffs affect more than US $30 billion of Chinese exports to Mexico, and around $9 billion of this losses would be borne by China's automobile and auto parts sectors as Mexico is the largest export destination for Chinese vehicles in 2025. Despite the decline in import of Chinese-designed cars, sales of Chinese car brands increased significantly in the Q1 2026.