China tariffs could backfire on Mexican industry, chamber warns

The Mexico-China Chamber of Commerce and Technology (MEXCHAM) has warned of the perchance antagonistic consequences of introducing precocious tariffs connected Chinese imports for the improvement and maturation of strategical concern sectors and the proviso chains that marque products sold from Mexico competitive.

Mexico announced plans connected Thursday to present duties of up to 50% connected cars and different products made by China and different Asian producers with which it does not person a escaped commercialized agreement, pursuing mounting unit from United States President Donald Trump to present tariffs connected China.

On Friday, President Sheinbaum pushed backmost powerfully connected China’s accusation that her administration’s projected tariffs connected imports of Asian cars are aimed astatine China and meant to appease the U.S. At the aforesaid time, she near the doorway unfastened to negotiation. (Victoria Valtierra/Cuartoscuro)

However, Mexican President Claudia Sheinbaum has stressed that the projected tariffs neither people China nor are the effect of U.S. pressure. 

China has urged Mexico to “think twice” earlier levying tariffs.  

“Any unilateral tariff summation by Mexico, adjacent wrong the model of WTO (World Trade Organization) rules, would beryllium seen arsenic appeasement and compromise toward unilateral bullying,” a spokesperson for the Chinese Commerce Ministry said successful a connection connected Thursday. 

The projected tariffs scope from 10% to 50% connected implicit 1,300 products and are aimed astatine protecting nationalist industry, according to the Sheinbaum administration.  

Experts consulted by the paper Milenio said that astatine slightest six cardinal industries would travel nether menace if tariffs were introduced, arsenic galore of their inputs are not manufactured elsewhere successful the Americas. These see the automotive, electronics, pharmaceuticals, chemicals, telecommunications and cleanable vigor industries. 

“Mexico would suffer competitiveness successful sectors with precocious substitutability successful China,” said the Chief Economist astatine the brokerage location Valmex, Gerónimo Ugarte Bedwell. “While domestically, it would endure inflationary and manufacturing outgo pressures owed to its dependence connected Chinese inputs.” 

Sheinbaum proposes tariffs targeting 1,371 merchandise categories including vehicles, apparel and electronics

“The Mexican government’s connection to summation tariffs connected cardinal segments, specified arsenic parts and components for motorcycles, automobiles, batteries, engines, etc., constitutes a threat… oregon straight harms the improvement of the mobility sector, and peculiarly electrical mobility,” Ugarte added.

Ugarte warned that the instauration of tariffs by Mexico could promote China to present retaliatory tariffs connected Mexican goods, specified arsenic copper ore. 

MEXCHAM has called for a reconsideration of the projected tariffs, suggesting that Mexico should behaviour a “very clear” investigation of the country’s factual options for replacing these high-tech imports successful the contiguous future. 

“Otherwise, we volition beryllium canceling immoderate anticipation of absorbing, consolidating, and processing exertion successful the Mexican marketplace for cardinal sectors… that thrust ostentation control, thereby preserving the remunerative capableness of the minimum wage successful Mexico,” MEXCHAM said. 

President Sheinbaum has said that portion she does not privation immoderate struggle with China, she seeks to support Mexico’s home manufacture done the move. In the archetypal six months of 2025, Mexico attracted US $3 cardinal successful caller overseas nonstop concern and the ostentation complaint was 3.57% successful August.

With reports from Milenio, Bloomberg and La Crónica de Hoy