EL PASO, Texas (Border Report) – As if taking a page from President Trump’s economic playbook, Mexico plans to more than double tariffs on countries that sell more to Mexicans than they buy from them.
China tops the list.
“These are not coercive measures, and they are not (only) against China,” Mexican President Claudia Sheinbaum said at a recent news conference broadcast online. “These are decisions we take toward countries we do not have a free trade agreement with. It is a decision meant to strengthen our economy.”
The tariffs of up to 50 percent on imports are included in the Sept. 8 budget proposal for next year that Sheinbaum’s office sent to the Mexican Congress.
The tariffs include 1,463 goods and services in 19 industries such as automotive, auto parts, textile, plastic, steel and aluminum.
China holds an enormous trade surplus over Mexico. Chinese companies so far this year have exported $51.4 billion to Mexico while Mexican entrepreneurs have shipped $3.83 billion consisting primarily of mineral ores, agricultural products and some manufactured components, per Mexican government data.
The Mexican congress, controlled by Sheinbaum’s MORENA Party, hasn’t discussed the tariffs yet but already China has warned of retaliation.
“China hopes Mexico will exercise caution and think twice before making any tariff adjustment,” a Ministry of Commerce spokesperson said in a statement posted on X by the Chinese Embassy in Mexico City.
The post emphasized the strong opposition U.S. tariffs are drawing worldwide and urged all countries not to give in to “external coercion.”
“In this context, any unilateral tariff measures taken by Mexico, even if within the framework of the World Trade Organization rules, will be regarded as appeasement and compromise towards unilateral bullying,” the post shared by the Chinese embassy said.
Mexico has been under heavy pressure by the Trump administration to stop the flow of drugs and migrants to the United States under the threat of tariffs. The two countries — and Canada — will be reviewing the U.S.-Mexico-Canada Agreement next year, which Trump has said he wants to improve.
Sheinbaum said her government is talking to China and other countries affected by the tariff hike to prevent misunderstandings.
“We made this decision from the point of view of strengthening our economy. We had talked to China — sent a commission a few months ago – and (this week) we will have talks with them. South Korea also wants a dialogue,” she said. “It is nothing against any country. It’s an important decision to strengthen the Mexican economy and national manufacturing.”
Russia is another target.
Mexico this year has exported about $13 million in goods to Russia while opening the door to $625 million in Russian exports such as steel, aluminum, rubber, wheat and fertilizers. Mexico is Russia’s second-largest exports destination in Latin America, after Brazil, according to trade industry journals.
India is a third major target. It exports nearly $7 billion a year to Mexico while receiving $2 billion in Mexican exports, primarily crude oil, according to The Observatory of Economic Complexity.
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