Trade Brief #1: US exclusions expire, Mexico and Brazil raise duties, EU machinery rules change in January
Five rule changes that affect what machinery and industrial supplies from China cost in each market.
United States: 178 Section 301 exclusions expire on November 9
The remaining exclusions, many covering machinery and industrial components, expire at 11:59 p.m. Eastern on November 9, 2026. After that, those products pay the full Section 301 rate for their list, usually 25%. The 12.5% forced-labor Section 301 duty in force since July 24, 2026 applies on top and was never covered by the exclusions.
Mexico: tariffs of 5% to 50% on 1,463 tariff lines from non-FTA countries
Since January 1, 2026, Mexico applies higher tariffs to 1,463 tariff lines from countries without a trade agreement, China included. Most production machinery is outside the list, but each tariff line must be checked. IMMEX and PROSEC remain the routes to reduced duty for registered producers.
Brazil: higher duty on capital goods in 2026, ex-tarifário still at 0%
Gecex Resolution 852/2026 raised import duty on capital goods: lines below 7.2% moved to 7.2%, and lines between 12.6% and 20% moved to 20%. Machines with no local production can still apply for an ex-tarifário at 0% duty, which takes several months to approve. Chinese machines reached 36% of Brazil's machinery imports in January–August 2026.
European Union: the new Machinery Regulation applies from January 20, 2027
Regulation (EU) 2023/1230 replaces the Machinery Directive on January 20, 2027, with no transition period. A company that buys a machine directly from China for use in the EU becomes its importer and must check that the manufacturer completed the conformity assessment and technical documentation and that the machine carries CE marking.
Argentina: lower duty on key capital goods
Decree 513/2025 cut import duty to 12.6% for a group of capital goods, including laser cutters, press brakes, presses and centrifugal pumps, which previously paid between 20% and 35%. Import VAT on capital goods remains at 10.5%.
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