Mexico imposed a huge new tax on imported sugar. The government announced on Tuesday that all sugar imports would be hit with a 156% tariff. This means that if someone wants to import sugar from abroad into Mexico, they will have to pay an extra 156% of the normal price. President Claudia Sheinbaum signed the order, which appeared in the country’s official government papers on Monday night. The reason for the move was, sugar prices globally have fallen too low. Mexico also fears that too much cheap foreign sugar is harming local farmers who grow sugarcane.
Why Mexico Made This Decision
Mexico is normally not an importer of sugar, as it produces about 5 million tons of sugar annually. But there have been changes in these numbers over the past 3 years. Changing weather ruined crops, forcing a decline in local sugar production. Meanwhile, Mexico’s exports of sugar to the United States also aren’t as robust as they used to be. The country turned to buying sugar overseas to make up the difference.
Over the last three years, Mexico imported just over a million tons of foreign sugar, a lot compared to earlier times when Mexico barely imported any sugar at all. The government got worried that this trend would continue. With sugar prices falling around the world, imports could increase in the Mexican market. This would hurt local sugarcane farmers who can’t compete with lower prices from imported sugar.
Carlos Blackaller heads Mexico’s main sugarcane farmers group. He told reporters that the new tariff gives much better protection to Mexican sugar producers. He says the tax will give local farmers slightly higher prices for their sugar in the coming season. Most importantly, he claims the tariff will basically stop all foreign sugar from entering Mexico because it becomes too expensive to import.
How the New Tax Works
The 156% applies to every type of sugar, from white sugar to beet sugar to various syrups. But for one special type of sugar, there’s an even larger tax: refined liquid sugar receives a whopping 210.44% tariff. That’s more than double the price just in taxes alone.
Before this new rule, imported sugar faced fees between $360 and $390 per ton. That is not how the new system works. The rate of 156% comprises insurance costs, shipping fees, and other expenses. That makes bringing foreign sugar into Mexico extremely expensive, let alone worth it, for most importers.
The timing of this decision is important, too. Mexico just kicked off its new sugar growing season, 2025-26. Farmers anticipate producing some 5.2 million tons of sugar this year. That’s much better than last year, when they made only 4.7 million tons. With production going back up and imports basically stopped, Mexican farmers look like they will have a good year.
What It Means for Sugar Business in Mexico
Sugarcane is produced throughout much of Mexico. The industry is important for thousands of farming families. Of the 5 million tons that are manufactured each year, approximately 4 million tons stay in the country for local purchase and use. The rest is sold to other nations, nearly all to the United States.
Selling sugar to America is good business for farmers in Mexico. That’s because the US pays better prices than most other countries. But today, Mexico can send no more than 188,00 tons of sugar to the US. That is the limit set by trade treaties between the two countries.
The rest of Mexico’s extra sugar goes onto the world market. Unfortunately, world prices are much lower than what the US pays for this. This is one reason why protection of the local market became so important. If cheap foreign sugar came in and pushed prices down, Mexican farmers would struggle to make money.
Owners of sugar mills have an association which represents them. They have not, as yet, spoken on the new tariff. Farmers appear to be pleased with the decision, as this protects them against cheap imports.
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