China warns of retaliation after Mexico raises tariffs

China signaled it may respond with countermeasures after Mexico imposed new tariffs on imports, escalating trade tensions between the two countries and raising concerns across key industrial sectors.

The Chinese Ministry of Commerce stated that Mexico’s recent tariff increases constitute barriers to trade and investment, emphasizing that Beijing reserves the right to take retaliatory action to protect its economic interests. The measures affect more than $30 billion worth of Chinese exports, with significant implications for manufacturing industries.

According to Chinese authorities, the hardest-hit sectors include mechanical and electrical goods, with potential losses estimated at US$9.4 billion. The automotive and auto parts industry alone could account for nearly US$9 billion of that impact, reflecting Mexico’s importance as a major destination for Chinese vehicle exports in recent years.

Mexico introduced the tariffs as part of a broader strategy targeting imports from countries without free trade agreements, with duties reaching up to 35% on many products. The policy has been widely interpreted as an effort to strengthen domestic industries while aligning more closely with U.S. trade positions amid ongoing global tensions.

Beyond tariffs, China also criticized additional trade barriers, including stricter customs procedures, which could complicate operations for Chinese companies and discourage further investment in Mexico.

While Beijing has not yet detailed specific retaliatory steps, officials reiterated that they are prepared to act if necessary, signaling the potential for a broader trade dispute that could affect supply chains and bilateral economic relations.