As Mexican officials get ready for a difficult review of the U.S.-Mexico-Canada Agreement, a trade agreement essential to the nation’s economic strategy, Beijing issued a stern warning in response to Mexico’s decision to increase tariffs on important Chinese imports.
On Wednesday, the Mexican Senate approved legislation raising tariffs by as much as 50% on steel, automobiles and other goods imported from China and other Asian countries that lack trade agreements with Mexico.The move targets the surge in Chinese-made vehicles, which now make up nearly one-third of the roughly 1.6 million cars Mexico expects to sell this year. Chinese automakers such as BYD, which has rapidly expanded its presence in Mexico over the past two years by exporting low-cost electric vehicles from China, are likely to feel the impact. On the other hand, Mexican-based automakers, such as General Motors, Ford, Stellantis, and South Korea’s KIA, are free to import cars made in China.
Mexico puts 50% tariffs on Chinese goods
Many Latin American nations have expanded their trade relations with China over the last 20 years, importing manufactured goods and exporting commodities. Although Mexico has followed that trend, it still sees China as a competitor using low-cost manufacturing to gain market share in the United States. According to Antonio Ortiz-Mena, a Georgetown University trade expert, Mexico was the final member of the WTO to authorize China’s entry in the early 2000s. “From the outset, Mexico voiced concerns about unfair trade practices by China,” he said.
Beijing cautioned that the actions might jeopardize China’s national interests and urged Mexico to stop what it called “unilateral, protectionist practices.” China’s Commerce Ministry stated on Thursday that the updated plan still presents risks, despite the fact that Mexican authorities reduced the initial tariff proposal following discussions with businesses, foreign governments, and other stakeholders. The ministry warned that no agreement should jeopardize international trade or China’s legitimate interests, even though it acknowledged that the tariffs might play a role in the USMCA review.
Claims that the tariffs specifically target China were denied by Mexican President Claudia Sheinbaum. “The measures aren’t aimed at China—that’s very important—they are aimed at countries with which we don’t have a trade agreement,” she said Thursday at her daily news conference.
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