The Mexican government is reportedly exploring the possibility of further expanding the trade restrictions and raising tariffs on certain imported goods, while continuing case-by-case investigations into alleged "dumping" by China and other countries. In January, Mexico imposed tariffs of up to 50 percent on approximately 1,500 products from nations with which it does not have a free trade agreement, a policy that has directly impacted China.
Bilateral economic cooperation is based on international rules and market principles, with mutual benefit as its defining characteristic. Politicizing economic issues serves no one's interests. Mexico should think twice before moving forward with the new trade restrictions.
The move comes as Mexico is seeking to persuade the United States to lower tariffs on its automotive and steel products and to secure more favorable rules of origin during the ongoing review of the United States-Mexico-Canada Agreement. By increasing trade barriers against Chinese goods and strengthening origin and anti-transshipment controls, Mexico aims to demonstrate to Washington that it is not a "back-door" for Chinese products entering the US market, thereby enhancing its bargaining power in the USMCA negotiations.
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The proposed tariff hikes seem like an attempt to appease the US, while targeting Chinese goods perceived to be direct competitors to domestic industries. But Mexican manufacturing is highly dependent on Chinese intermediate goods, components and equipment. If Mexico raises import tariffs on Chinese goods and expands trade remedies such as "antidumping" and "countervailing" duties, the cost of Chinese goods entering the Mexican market will rise further, potentially leading to a contraction in the bilateral trade volume.
Mexico would be effectively shooting itself in the foot to please the US, only to find that the bullet is paid for by higher costs for its own consumers and a less competitive export sector.
Tariff protection alone does not automatically translate into stronger domestic competitiveness. Mexico's real bottlenecks are its domestic supplier base, technological capabilities, energy and power infrastructure, shortage of skilled labor and weak research and development capacity.
Beijing has consistently maintained that trade wars benefit no one while repeatedly emphasizing that China and Mexico are partners not rivals. China is Mexico's second-largest trading partner, while Mexico ranks as China's second-largest trading partner in Latin America. In recent years, the economic relationship has deepened from the trade in goods to industry chain collaboration and production capacity cooperation.
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Even if Mexico yields to US pressure and works hand in glove with it to target Chinese industries, there is no guarantee it will gain more leverage in the USMCA negotiations. This week's tough tariff negotiations between the US and Canada have laid bare a stark truth: the US views its two neighbors not as partners, but as free-riders who have been taking advantage of it for too long.
China reserves the right to take corresponding measures to safeguard its interests. A trade and investment barrier investigation launched by the Chinese Ministry of Commerce in September last year concluded in March that Mexico's tariff policies constitute investment barriers that restrict market access for Chinese enterprises.
China opposes unilateral tariff hikes in all forms, and has urged Mexico to correct its wrong practices of unilateralism and protectionism at an early date. The path forward lies not in erecting barriers, but in embracing openness, cooperation, and a competitive dynamism that drives genuine industrial progress.
