Mexico Considers New Tariffs on Chinese Goods Amid U.S. Pressure

Mexico is reportedly exploring the possibility of imposing new tariffs on Chinese goods, including steel and automobiles, a move seen by some as an alignment with U.S. trade policy towards China. This consideration comes at a time of uncertainty surrounding the future of the United States-Mexico-Canada Agreement (USMCA) and increasing pressure from the U.S. for a unified trade stance against Beijing.

Bloomberg reported, citing four sources familiar with the matter, that the Mexican government is internally discussing the imposition of new or increased import duties on products from countries with which Mexico has not signed a free trade agreement, specifically targeting China. The Ministry of Economy and the Ministry of Finance are reportedly evaluating which product categories, such as steel and automobiles, could be subject to these new tariffs or increased rates.

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There are no concrete plans or proposals to implement new tariff adjustments.

While Mexico's Economy Ministry stated that there are no concrete plans or proposals for new tariff adjustments, it confirmed ongoing consultations with businesses. These discussions are similar to those held when developing a tariff package earlier this year targeting Asian imports. The ministry also indicated that investigations into suspected dumping of imported goods below production costs would continue, potentially leading to new tariffs.

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The Economy Ministry is continuously consulting with businesses, similar to when it prepared the tariff package for Asian imports implemented earlier this year.

Analysts suggest this potential move by Mexico could be an attempt to strengthen trade relations with the United States, particularly under the Trump administration, which has been vocal about its trade policies. The U.S. has previously urged Mexico to impose high tariffs on Chinese steel and aluminum as part of a coordinated strategy against China. President Claudia Sheinbaum's administration appears to be balancing U.S. demands with the need to protect its own manufacturing sector, as outlined in its 'Plan Mexico' industrial policy aimed at reducing low-cost Asian imports and boosting domestic production.

This potential tariff imposition follows earlier actions by Mexico, which in January increased tariffs by up to 50% on approximately 1,500 Chinese product categories, including automobiles and steel. This measure reportedly led to a nearly one-third decrease in the value of Chinese imports subject to tariffs in the first five months of the year, with passenger cars and parts imports falling by over 40%.

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We will continue to conduct case-by-case investigations into allegations of dumping of imported goods below production costs, which could lead to the imposition of new tariffs.