Beijing accuses Mexico of submitting to US ‘coercion’ over tariff increase on Chinese cars

The tariff increase on Asian cars announced on Wednesday by Claudia Sheinbaum’s government in Mexico has not sat well with Chinese authorities, who on Thursday rejected the measure and assured that China will “resolutely protect” its “rights and interests,” in the words of Foreign Ministry spokesperson Lin Jian. In China, the measure has been seen as a response to coercion from the United States in the midst of a global tariff war and as it tries to increase its own influence in Latin America.

The Mexican president’s initiative, which is still pending legislative approval to enter into force, includes increases of up to 50% for cars imported from the Asian country, currently subject to a 20% tariff. The list of sectors impacted by the decree also includes the textile and steel industries, as well as other countries without a trade agreement with Mexico, such as South Korea, India, Indonesia, Russia and Thailand.

A spokesman for the Chinese Ministry of Commerce said that Beijing will view the measure as “a concession to unilateral intimidation” by Washington. And he warned that it will “reduce business confidence in investing in Mexico.” The Mexican cabinet has dismissed the theory that this move is due to the “geopolitical logic” being applied by Donald Trump.

In this regard, the Chinese Foreign Ministry spokesperson stated that his country “firmly opposes any coercion by third parties to impose restrictions on China under various pretexts,” an accusation that Mexican Foreign Minister Marcelo Ebrard has dismissed. “It’s not a pretext, it’s the trade system,” he responded during an interview with Radio Fórmula this Thursday morning, referring to the framework set by the World Trade Organization (WTO), of which both countries are members, which allows tariffs to be escalated to that percentage.

“It doesn’t have a geopolitical rationale, but rather one of protecting our industry,” he argued, distancing himself from Trump’s technique of pursuing gains in additional areas unrelated to the one he’s pushing for, such as security in the case of Mexico. Ebrard said that the goal of raising tariffs is to protect the nearly 320,000 national jobs at risk as a result of importing products at prices below the reference price in the country.

The initiative joins those of other countries and regions around the world, such as the European Union and Brazil, which have recently erected trade barriers to Chinese cars, targeting electric vehicles in particular. Meanwhile, Mexico has become the main export destination for cars manufactured in China, surpassing Russia after Moscow imposed protectionist measures this year.

The Asian giant—the world’s leading car manufacturer and exporter—shipped around 280,100 vehicles to Mexico in the first half of 2025, a year-on-year increase of 24%, according to Bloomberg. For China, whose domestic consumption remains sluggish, exports are key to maintaining the pace of its economic engine. But the White House’s barrage of tariffs is taking its toll, and in August it saw its trade with the rest of the world slow down.

Mexico is an important part of the scheme. China is Mexico’s second largest trading partner behind the United States, and imports from the Asian giant have almost doubled in the last decade, at the expense of a growing trade deficit for Mexico. Trump has accused his southern neighbor of acting as a back door for Chinese products to enter the United States.

Plan México

The initiative is part of the so-called Plan México, the project through which Sheinbaum’s administration aims to boost domestic industry, among other things, by reducing the tax advantages granted to foreign producers who export to Mexico. The proposal outlined by the president aims to increase tariffs from 16.1% to 33.8% on average. In addition to cars and auto parts, some of the products that would be subject to tariffs of up to the 50% maximum set by the WTO include textiles, steel, paper and cardboard, glass, motorcycles, soaps, perfumes, and cosmetics. The economic impact would be approximately $52 billion, equivalent to 8.6% of purchases abroad.

Along the same lines as the measure presented this Wednesday, the government announced two weeks ago that the import of finished footwear, that is, footwear to which no element or value is added in Mexico, will no longer be included in the temporary import regime. This system exempts products that cross the border several times to facilitate their assembly from paying VAT. In the case of finished footwear, this tax advantage is unjustified and, according to the executive branch, represents unfair competition for the Mexican industry, which employs more than 130,000 direct workers.

Given the risk of the issue escalating into a political rather than just a commercial one, Sheinbaum said this Thursday, during her morning press conference, that she does not want “any conflict with any country” and that she is speaking with representatives of the countries that would potentially be affected. “We are speaking with the Chinese ambassador to Mexico, with South Korea... We are explaining to them that this is a measure that has to do with strengthening our economy. What we want is to talk without the need to generate any conflict,” she stated. The president also ruled out the possible inflationary effect of the measure. “A very detailed study was conducted. There are many products that do not have these tariffs,” she pointed out.

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