China warns of retaliation over Mexico's tariff hikes

10:30

China stated on Wednesday that Mexico's recent trade measures, including significant tariff increases, represent barriers to trade and investment and affirmed its right to adopt countermeasures.

The increased import duties affect more than $30 billion in Chinese exports to Mexico. The Chinese Ministry of Commerce estimates potential losses of about $9.4 billion to China’s mechanical and electrical sectors, with nearly $9 billion of that impact on the automobile and auto parts industries. Mexico was China’s largest vehicle export market in 2025, according to customs data and industry estimates.

In December, Mexico implemented tariff hikes of up to 35% on imports from China and other countries lacking free trade agreements. Analysts interpreted the move as an effort to appease the United States, which maintains high tariffs on Chinese goods.

While Beijing has not yet announced specific countermeasures, the Ministry of Commerce has emphasized that China may take steps to protect its rights and interests if necessary.