Chinese Appliance Makers Consider Moving Production Abroad to Sidestep Mexico Tariffs

Mexico’s upcoming plan to impose tariffs of up to 50 percent on select products from China and other Asian nations—covering sectors such as automobiles, home appliances, steel, and furniture—will likely impact China’s exports of white goods to Mexico. This could also prompt companies to reallocate their manufacturing orders to other countries, industry insiders suggest.

Starting January 1, 2026, Mexico proposes to raise tariffs by between 15 and 30 percent on Chinese household appliances. Over time, this may compel businesses to reconsider their overseas production strategies or overhaul their supply chains, according to Wang Juan, a senior analyst at industry website ChinaIOL.com.

While these tariffs will influence air conditioner exports to Mexico, the overall effect is expected to be minimal. Long Fei, a senior analyst at ChinaIOL, noted that inventories in Mexico already remain high, with most companies having accumulated substantial stock this year. Consequently, the Mexican market is projected to experience slight contraction in 2026 as businesses work through existing inventory.

“Mexico accounted for roughly 4.3 percent of China’s washing machine exports this year, predominantly semi-automatic models with relatively low profit margins,” said Ni Zijian, another senior analyst at ChinaIOL. “Increased tariffs might cause some orders to be suspended or lead to a shift toward overseas manufacturing.”

The planned tariff hikes will also impact smaller home appliances, including electric fans, coffee makers, and microwaves.

An executive from a small appliance exporter explained that Mexico contributes only a small portion of their exports and that any tariff increases next year can be mitigated by outsourcing orders to factories in other countries.

Over recent years, major Chinese appliance manufacturers have methodically set up manufacturing facilities in Mexico to access the Mexican market and, more critically, the U.S. market. For instance, Hisense has established refrigerator and washing machine plants, TCL runs a television factory through an earlier acquisition, and Haier acquired control of Mexican appliance firm Mabe through its ownership of GE Appliances.

Trade Decline

From January to October, China’s exports of white goods to Mexico declined by 10.6 percent year-over-year, totaling USD 2.9 billion, primarily due to the effects of reciprocal tariffs levied by the U.S., according to customs data.

Breaking down the figures, exports of air conditioners fell by 30 percent, washing machine exports plummeted by 49.8 percent, and freezer shipments decreased by 10.7 percent. Other categories saw declines as well: electric fans by 14.8 percent, microwaves by 9.2 percent, hair dryers by 16.8 percent, water purifiers by 39.7 percent, irons by 16.2 percent, juicers by 21.1 percent, and toasters by 27.7 percent.

Despite this downturn, China’s home appliance exports to Mexico increased by 32.3 percent in 2024 compared to the previous year, reaching USD 3.8 billion. This growth was largely driven by medium- and large-sized appliances such as air conditioners, refrigerators, and microwaves, in addition to smaller items like fans and blenders. However, in the first half of this year, due to reciprocal tariffs, China’s exports of home appliances to Mexico declined by 9 percent compared to the same period last year.