“At a time when U.S. tariff abuse has sparked widespread global opposition, countries should strengthen communication and coordination to safeguard free trade and multilateralism, rather than sacrifice third-party interests under coercion,” a Chinese commerce ministry spokesperson said late Thursday.
Beijing warns Mexico that tariffs could harm Chinese goods
The spokesperson vowed that China would take the required actions to protect its rights and interests and claimed that any unilateral tariff increase by Mexico would amount to appeasing “unilateral bullying.”
As part of its efforts to increase domestic production and replace imports from Asia, Mexico unveiled the plan last week. According to the Mexican government, the proposal, would impact imports totaling about $52 billion, including steel, automobiles, toys, textiles, appliances, and footwear.
Mexican officials did not immediately answer requests for comments.
One of Mexico’s biggest non-trade-agreement trading partners, China, has emerged as a major exporter to Mexico. Approximately one out of every five new cars sold in Mexico are now Chinese. Bilateral trade has been boosted by growing Chinese investment, but Mexico’s efforts to advance up the manufacturing value chain have been hampered by the influx of imports. Meanwhile, Mexico has been under pressure from President Trump to adopt a more protectionist posture.
“Mexico is in a tricky position because so much of its economy depends on exports to the U.S.,” said Joe Mazur, senior analyst at Trivium China. “If forced to choose, Mexico likely sees U.S. tariffs as a bigger threat than any retaliation from China.”
Beijing faces its own dilemma. “If China doesn’t act, it sets a precedent that the U.S. can pressure third countries to sell out China’s interests,” Mazur said. “But if Beijing retaliates too forcefully, it risks spooking other trade partners.”
Analysts say the response remains uncertain. “How China handles Mexico could become a template for future retaliation against third countries seen as harming Beijing’s interests at Washington’s behest,” Mazur added.
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