BEIJING, March 25 - China has formally characterized Mexico's recent trade actions, including sharp increases in import duties, as trade and investment barriers and asserted it has the right to take countermeasures, the Ministry of Commerce said on Wednesday.
In the ministry's closing assessment of an investigation into Mexico's measures, officials concluded that the tariff hikes affect more than $30 billion in Chinese exports to Mexico. The ministry estimated that the measures could produce roughly $9.4 billion in losses to China's mechanical and electrical sectors.
Within that broader figure, the ministry reported that about $9 billion of the projected losses would fall on China's automobile and auto parts industries. The statement noted that Mexico was China's largest vehicle export destination in 2025, citing customs data and industry estimates.
Mexico announced the tariff increases in December, imposing steep duties on imports from China and other countries that do not have free trade agreements with Mexico. The ministry noted that the increases run up to 35% on the majority of products. The Mexican move was seen by analysts as an effort to placate the United States, whose president imposed significant tariffs on Chinese goods.
Beijing has not implemented retaliatory measures in response to Mexico's decision. Still, the commerce ministry reiterated that it could take steps to safeguard China's rights and interests if it deems that necessary.
Beyond autos and electrical equipment, the ministry said Mexico's tariff hikes would also damage Chinese exports of certain metal and chemical products as well as textiles and light industrial goods. The assessment also identified non-tariff measures adopted by Mexico in recent years - for example, complex customs inspection requirements - as potential constraints on Chinese companies' investments and operations in the Latin American country.
The ministry's findings lay out the economic exposure Beijing sees from Mexico's policy changes while leaving open the possibility of future action. For now, Chinese authorities have confined their response to public statements asserting potential rights to countermeasures rather than announcing specific reprisals.
Clear summary: China says Mexico's December tariff increases and related trade measures amount to barriers that affect more than $30 billion in Chinese exports and could cause about $9.4 billion in losses to its mechanical and electrical sectors, including roughly $9 billion for autos and parts. Beijing claims the right to retaliate but has not announced countermeasures.
Key points:
- Mexico's tariff hikes affect over $30 billion of Chinese exports and run as high as 35% on most products.
- The Chinese commerce ministry estimates about $9.4 billion in losses to mechanical and electrical sectors, with approximately $9 billion impacting automobile and auto parts industries.
- Other sectors identified as hurt by the measures include metals, chemicals, textiles, and light industrial products; complex customs inspections may also restrict Chinese investment and operations in Mexico.
Risks and uncertainties:
- Potential for retaliatory measures - China has said it has the right to take countermeasures but has not specified any actions.
- Ongoing restrictions on Chinese business activity - non-tariff measures such as complex customs inspection requirements could limit investments and operations.
- Sector-specific revenue exposure - mechanical and electrical goods, automobiles and auto parts, metals, chemicals, textiles, and light industrial products face potential export losses.