(Yicai) Dec. 19 -- Chinese home appliance makers may route orders through their overseas factories after Mexico approved tariff hikes of up to 50 percent on selected products from China and several other Asian countries from next year, according to analysts at ChinaIOL.com, an industry information platform.

The 15 percent and 30 percent import tariffs Mexico will impose on Chinese white goods from Jan. 1 could force manufacturers to adjust their overseas production footprints and remodel supply chains in the long term, Senior Analyst Wang Juan told Yicai.

Mexican lawmakers last week approved sweeping tariff increases on imports from China and a number of other Asian nations, with duties ranging from 5 percent to as much as 50 percent on more than 1,400 product lines, including cars, appliances, textiles, steel and plastics. The higher levies apply to imports from countries without free-trade agreements with Mexico such as China, India, South Korea, Thailand, and Vietnam.

The tariffs will only moderately affect China’s air conditioner exports because Mexican inventories are already high, said Senior Analyst Long Fei, adding that the market is expected to shrink a little in 2026 while clearing existing stock.

Mexico accounted for 4.3 percent of China’s washing machine exports this year, mostly semi-automatic models with low profit margins, according to Ni Zijian, another senior analyst at ChinaIOL.com. Higher tariffs could lead to suspended orders or a shift to overseas production, he pointed out.

The tariff changes also affect small and medium-sized appliances such as electric fans, coffee machines, and microwaves. An executive at a small appliances exporter said Mexico’s higher levies can be managed by using overseas factories.

In recent years, Chinese manufacturers have invested in factories in Mexico to serve both the local and US markets. Hisense Group has built refrigerator and washing machine plants in the country, TCL operates a television factory there through an earlier acquisition, and Haier Group controls Mexican producer Mabe through its ownership of GE Appliances.

Between January and October, exports of Chinese white goods to Mexico slumped 11 percent to USD2.9 billion from a year earlier as a result of the US’ reciprocal tariffs, according to customs data.

Air-con, washer, and freezer shipments to Mexico dropped 30 percent, 50 percent, and 11 percent, respectively. Other exports also slumped, with electric fans down 15 percent, microwaves 9.2 percent, hair dryers 17 percent, water purifiers 40 percent, irons 16 percent, juicers 21 percent, and toasters 28 percent.

Last year, appliance exports to Mexico surged 32 percent to USD3.8 billion, mainly driven by mid-sized and big items such as air-cons, fridges, and microwaves, as well as small goods like fans and blenders, according to the China Chamber of Commerce for Import and Export of Machinery and Electronic Products. But in the first seven months of 2025, they fell 9 percent due to reciprocal tariffs.

Editor: Kim Taylor