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China, which ranks Mexico as its largest export market in the first half of the year, has strongly opposed Mexico’s recent plans to impose tariffs of up to 50% on imports including automobiles, steel, textiles, and toys from China and other Asian countries, according to the foreign ministry.
A spokesperson for China’s foreign ministry stated yesterday that the country firmly opposes this move and will steadfastly defend its rights and interests as necessary.
On September 9, Mexican President Claudia Sheinbaum submitted a proposal to the Chamber of Deputies seeking approval to raise import tariffs on products from countries without free trade agreements with Mexico, including China. If approved, the new tariff policy would take effect by December 31, 2026.
The spokesperson emphasized that China promotes inclusive and mutually beneficial economic globalization while opposing unilateral actions, protectionism, and discriminatory practices. China rejects any form of coercive restrictions.
Additionally, it was noted that both China and Mexico, as key members of the Global South, share a trade relationship based on mutual benefits and win-win cooperation. China values its bilateral ties with Mexico and hopes both nations can work together to promote global trade and economic recovery.
In the automotive industry, Mexico plans to increase tariffs on imported vehicles from 20% to 50%, and auto parts from 10% to 50%. Analysts suggest these changes could significantly raise the costs for Chinese automakers exporting to Mexico, potentially reducing their competitiveness.
Major Chinese automakers have yet to publicly comment on the proposal. Automakers with manufacturing operations in Mexico, including companies like Tuopu Group, Sanhua Intelligent Controls, and Yinlun Machinery, could face supply chain disruptions due to higher logistics expenses. Additionally, companies like BYD and Chery, which have announced plans to establish factories in Mexico, may need to reassess their investment strategies in light of these new tariffs.
Last year, Mexico sold nearly 1.5 million vehicles, a 10% increase from the previous year. In the first half of this year, vehicle sales totaled 709,300 units, which is a slight decline of 0.2% compared to the same period last year.
Data shows that Mexico has become China’s top export destination so far this year, surpassing Russia by importing 177,000 vehicles, according to the China Passenger Car Association. Last year, China exported 445,000 vehicles to Mexico, ranking second after Russia. Industry insiders estimate Chinese automakers currently hold a market share of around 13% to 15% in Mexico.
Mexico’s tariff proposal also includes a 35% tax on steel, toys, and motorcycles, along with a significant increase in textile tariffs from 10% to 50%.
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