The Mexico-China Chamber of Commerce and Technology has warned of the potentially negative consequences of introducing high tariffs on Chinese imports for the development and growth of strategic industrial sectors and the supply chains that make products sold from Mexico competitive.
Mexico announced plans on Thursday to introduce duties of up to 50% on cars and other products made by China and other Asian producers with which it does not have a free trade agreement, following mounting pressure from United States President Donald Trump to introduce tariffs on China.
However, Mexican President Claudia Sheinbaum has stressed that the proposed tariffs neither target China nor are the result of U.S. pressure.
China has urged Mexico to reconsider levying higher tariffs.
“Any unilateral tariff increase by Mexico, even within the framework of WTO (World Trade Organization) rules, would be seen as appeasement and compromise toward unilateral bullying,” a spokesperson for the Chinese Commerce Ministry said in a statement on Thursday.
The proposed tariffs range from 10% to 50% on over 1,300 products and are aimed at protecting national industry, according to the Sheinbaum administration.
Experts consulted by the newspaper Milenio said that at least six key industries would come under threat if tariffs were introduced, as many of their inputs are not manufactured elsewhere in the Americas. These include the automotive, electronics, pharmaceuticals, chemicals, telecommunications and clean energy industries.
“Mexico would lose competitiveness in sectors with high substitutability in China,” said the Chief Economist at the brokerage house Valmex, Gerónimo Ugarte Bedwell. “While domestically, it would suffer inflationary and manufacturing cost pressures due to its dependence on Chinese inputs.”
“The Mexican government’s proposal to increase tariffs on key segments, such as parts and components for motorcycles, automobiles, batteries, engines, etc., constitutes a threat… or directly harms the development of the mobility sector, and particularly electric mobility,” Ugarte added.
Ugarte warned that the introduction of tariffs by Mexico could encourage China to introduce retaliatory tariffs on Mexican goods, such as copper ore.
The Mexico-China Chamber has called for a reconsideration of the proposed tariffs, suggesting that Mexico should conduct a “very clear” analysis of the country’s concrete options for replacing these high-tech imports in the immediate future.
“Otherwise, we will be canceling any possibility of absorbing, consolidating, and developing technology in the Mexican market for key sectors… that drive inflation control, thereby preserving the remunerative capacity of the minimum wage in Mexico,” the Mexico-China Chamber said.
President Sheinbaum has said that while she does not want any conflict with China, she seeks to protect Mexico’s domestic industry through the move. In the first six months of 2025, Mexico attracted US $3 billion in new foreign direct investment and the inflation rate was 3.57% in August.
With reports from Milenio, Bloomberg and La Crónica de Hoy
Editor’s note: In it’s original version, this story mistakenly referred to the Mexico-China Chamber of Commerce as MEXCHAM. In reality, MEXCHAM is the China Chamber of Commerce in Mexico, a different organization, which supports the tariff proposal.
Kind of surprised how much leverage Sheinbaum is letting the US get away with. 25-50% tariffs will kill all the Chinese electric dealerships that have sprang up like weeds the past couple of years. It would also stop investment in electric infrastructure for charging. These are just one small part of the economic links. I suppose maybe the leverage could be to get China to build auto factories in Mexico, but again, Mexico killed that because the US didn’t like it. Meanwhile the US just charges Mexico more money and overall antagonistic towards Mexico. Mexico could come to regret it.
Mexico’s choice to alienate China rather than the US is its only move. As much as I hate how Trump goes about foreign policy, it is obvious the world is lining up to be bipolar again. It’s the US vs China and the US is smart to find out what countries want to align with them. The choice is easy for Mexico and Canada. They really have no choice. Europe doesn’t either for that matter.
Agree with RJ. Chinese cars are cheap and high quality and electric but allowing them to pour into the country would devistate the local auto industry (as is happening in other countries) and risk making the upcoming USMCA negotiations with the U.S. and Canada ugly. Mexico is clearly showing that the are aligned with their North American trading partners – let’s hope they reciprocate!
Yes possibly but they seem to be rolling over without getting much or even trying. There was a good article on this in Business Insider this morning. Still, they have a good opportunity to play one against the other more instead of rolling over.
Meeting with Rubio went horribly. He presented Claudia with 2 choices. Curtail trade with China or curtail the cartels. For obvious reasons she chose to blow up China trade.
So many Americans in Mexico have their surface based opinions of Mexicos Current President and What’s better for Mexico in regards to its proposed position on Tariffs with China. It is easy and satisfying to be retired and collecting on one’s accumulated stash of money leaving here in this wonderful country, called Mexico.
Being an Arm Chair Coach in the Big Game, when one has never played Professionally, nor College and perhaps not even on the local or High School level is so tempting and very difficult to resist.
I for one, want Mexico to grow and prosper in it’s on right. I want it to progress beyond the Grasp and Cycle of Corruption. According to many who are informed and know very well the life here in Mexico, the current President is Intelligent, and Smart about her use of her Intelligence. And Yes, she is also extremely Cautious about the potentialities surrounding her. She is a first for Mexico, overwhelmingly elected by her constituents; in many respects, similar to our current U.S. President. Mexico is now being forced to do something it has avoided avoided for many decades; Playing on the Global Stage. So if we can’t say something encouraging and supportive, it’s only fair of us to shut our mouths, and keep them SHUT.
When I was 27 or so living in San Diego, I was somewhere in the middle of my tour of being an Apprentice Operating Engineer. International Union, Local 24 I was operating a medium sized Track Laying Drott Backhoe. Prior to this day I had been operating a large Kohering 505 backhoe for several weeks digging through blue granite rock. I was only able to advance maybe 30 to 40 lineal feet per day. In a k case, this task ended and I was assigned to operate the Drott again digging laterals running off of the main sewer trunk line. My area of work was steeply slanted down hill and the soil was nothing similar to the blue granite rock of before. The morning I speak of started at 7:00 a.m. and by 10:30 or 11:00 of the same morning, I had dug around 600 lineal feet of 24” wide trench that was 3.5 feet deep by 24 inches wide. At that time Manuel Arrieta; a rather short Spanish gentleman of sixty or so, with quite greying hair, who always had a rather big cigar to chew on between his teeth and who was also the Company’s Owner, came driving up and quickly step down from his pickup and approached the machine. I then stopped so we could converse. He look at my progress and then ask me what I thought about it. I Responded and with GIANT GRIN, said, Well Heck Manuel, I’ve already dug more than 600 feet this morning!!!! He immediately says to me, “the Apprentice, “”Shit Jim, anyone can dig in a Snow Bank””!!! Put me right back in my rightful place! I always did like and respect Manue.
I recount this story in honor of my prior comments re: Mexico’s Current President. I also Like and Respect her, even though we’ve never met. This is her time to Shine Not Ours. If ya don’t like and agree with how the Sun Shines here, Go Back where you came from. And the sooner you do it, the sooner you’ll begin again to like things !!!!