Policy Background

Mexico is planning a significant tariff adjustment aimed at imports from non-FTA (Free Trade Agreement) countries such as China. The government has proposed raising import tariffs on electric vehicles (EVs) from around 20% to as high as 50%, the maximum permitted under WTO rules. This proposal follows the cancellation of earlier tax exemptions on EVs imported from non-FTA partners in late 2024.

If approved, this policy shift will reshape the competitive landscape for Chinese EVs entering Mexico, including certain categories of low-speed vehicles that may overlap with golf carts.

Will Golf Carts Be Affected?

Whether golf carts are directly impacted depends largely on how Mexican customs classifies them:

1. Road-legal electric golf carts

   • If the cart is certified for public road use and falls under the “light electric vehicle” category, it could be subject to the higher tariffs just like passenger EVs.

2. Non-road golf carts (resort, community, or course use)

   • If the product is categorized as a special-purpose or non-road vehicle, the tariff treatment may differ. In some cases, these vehicles may not be taxed under the same tariff lines as electric passenger cars.

3. Parts vs. fully assembled units

   • Fully built units (CBUs) are most exposed to tariff hikes.

   • Importing in CKD (Completely Knocked Down) or SKD (Semi Knocked Down) form for local assembly could reduce the tax burden depending on customs classification.

How to Import Golf Carts from China Under Higher Tariffs

1. Confirm HS Code and Product Classification

Work closely with Mexican customs brokers to determine the exact HS code for your golf carts. Proper classification can make the difference between facing a 50% tariff and paying a lower duty rate.

2. Consider Local Assembly in Mexico

Importing components instead of complete vehicles and assembling them in Mexico can reduce duties and add local value. Partnering with local assemblers may also help satisfy rules of origin and qualify for more favorable treatment.

3. Optimize Cost Structure

• Streamline production and logistics in China to offset tariff costs.

• Negotiate freight and port handling charges.

• Explore bulk shipments for economies of scale.

4. Target Niche Market Segments

Golf carts used in resorts, gated communities, and golf courses are often less price-sensitive. By focusing on high-end or custom models, you can maintain competitiveness even with higher tariffs.

5. Monitor Policy Developments

Since the tariff proposal still requires congressional approval, importers should closely track updates on timing, implementation details, and possible exemptions for special-purpose vehicles.

6. Contact Qsen golf cart

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