Mexico imposed steep tariffs of up to 210% on sugar imports from countries without existing trade agreements, effective November 12, 2025, as part of President Claudia Sheinbaum's strategy to protect domestic producers from declining global prices.
The measure targets refined liquid sugar and invert sugar with a 210.44% levy, while cane and beet sugar face 156% tariffs, replacing the previous rate of approximately $0.36 per kilogram. The tariffs apply to World Trade Organization member countries lacking free trade deals with Mexico, notably Brazil—the world's largest sugar exporter, accounting for 49.1% of global exports.
Mexico's Agriculture Ministry justified the move by citing falling international prices and oversupply. During the 2024-2025 cycle, domestic production reached 4.7 million tonnes against consumption of 3.9 million tonnes, creating a 1.4 million tonne inventory surplus that forced Mexico to sell excess supply internationally at depressed prices.
Global sugar markets face substantial oversupply, with analysts projecting a surplus ranging from 1.98 to 9.3 million metric tons for 2025-26. Raw sugar prices have fallen over 32% year-over-year to approximately 14.30 cents per pound as of November 2025.
The policy aligns with Sheinbaum's Plan México, unveiled in January 2025, which aims to strengthen domestic production and reduce import dependency. The initiative targets ensuring 50% of domestic supply is "Made in Mexico" while attracting $277 billion in national and foreign investment.
For Mexico's 2025-26 season, production is projected to recover to 5.2 million tonnes. However, the U.S. export quota stands at only 188,000 tonnes, limiting Mexico's ability to export surplus production to its primary market under the USMCA framework.
The tariffs come as Mexico navigates complex trade negotiations ahead of the USMCA review scheduled for 2026, while managing broader economic pressures that caused the economy to contract slightly in Q3 2024.
