Beijing Threatens Retaliation Over Mexico’s New China Tariffs

China's Commerce Ministry says Mexico's recent tariff increases create unfair trade barriers and Beijing has the right to respond with countermeasures. The tariff hikes impact over $30 billion in Chinese exports to Mexico, with China's auto industry facing nearly $9 billion in potential losses.

BEIJING – Chinese officials declared Wednesday that Mexico’s recent trade restrictions, including significant tariff increases, create unfair barriers to commerce and investment, giving Beijing grounds to implement retaliatory measures.

According to China’s Ministry of Commerce, the tariff increases impact over $30 billion in Chinese goods shipped to Mexico and could result in approximately $9.4 billion in losses for China’s mechanical and electrical manufacturing sectors, based on the ministry’s investigation findings.

The automotive sector faces the steepest impact, with an estimated $9 billion in losses expected for China’s car and auto parts manufacturers. Mexico had become China’s largest vehicle export market in 2025, according to customs records and industry projections cited by the ministry.

In December, Mexico implemented dramatic tariff increases on imports from China and other nations without existing free trade partnerships with Mexico, raising duties as high as 35% on most products. Industry experts viewed this action as Mexico’s effort to appease the United States, where the president had imposed substantial tariffs on Chinese merchandise.

While Beijing has not yet unveiled specific retaliatory actions in response to the tariffs, commerce ministry officials have consistently stated that China reserves the right to implement protective measures for its economic interests.

The ministry noted that Mexico’s tariff policy would also damage Chinese exports in metals, chemicals, textiles, and light manufacturing sectors.

Additionally, various non-tariff trade policies Mexico has implemented in recent years, including complicated customs inspection procedures, may further limit Chinese companies’ ability to invest and conduct business in the Latin American nation, ministry officials indicated.