The Mexican Government recently paused a controversial plan to impose tariffs of up to 50 percent on imports from China and other countries that have not signed free trade agreements with it. The proposed measure, announced on September 10, targeted 1,371 categories of products—from automobiles and steel to textiles and toys—affecting 16.8 percent of Mexico's imports.

Mexican President Claudia Sheinbaum on October 9 said her administration is analyzing potential changes, emphasizing the need for further international consultations before submitting a revised proposal to Congress. This abrupt halt to a plan initially slated for quick passage signals the government's caution in evaluating the proposed tariff hikes' economic and diplomatic consequences.

Analysts attribute the shift to pressure from the United States. During a meeting with the Mexican president in early September, U.S. Secretary of State Marco Rubio reportedly expressed dissatisfaction with Mexico-China trade relations, continuing a pattern of U.S. pressure to reduce Mexico's imports from China.

On September 25, China's Ministry of Commerce (MOFCOM) issued two announcements: One to initiate an anti-dumping investigation into pecan imports from Mexico and the U.S., and the other to launch an investigation into trade and investment barriers posed by Mexico's proposed restrictive measures against China.

A MOFCOM spokesperson said in the current context of the United States' abuse of tariff hikes, all countries should jointly oppose all forms of unilateralism and protectionism, and must not sacrifice the interests of third parties under the coercion of others.

China's resolute response should signal to the Mexican Government that its unilateral tariff hikes, if implemented, would not only harm the interests of trading partners like China but also severely undermine the certainty of Mexico's business environment.

Such a move would diminish international capital's confidence in investing in Mexico. Halting this misguided proposal is ultimately an act of safeguarding Mexico's own economic interests, international reputation and future.

For years, China has been Mexico's second largest trading partner, while Mexico has consistently been China's second largest trading partner in Latin America. According to official Mexican data, trade between Mexico and China reached a record high in the first half of 2025. Mexico's imports from China totaled $62.1 billion, while its exports to China reached $4.6 billion. This strong growth underscores a deepening, mutually beneficial economic relationship, reflected in expanding trade volumes, growing investments, industrial chain collaboration and cooperation in emerging sectors.

The two countries share a long-standing friendship, characterized by growing political mutual trust and enhanced people-to-people exchange. Their economic and trade relations are not only intensive but also highly complementary. Both hold similar views on multiple international issues, jointly advocating for inclusive economic globalization. 

Against a backdrop of global supply chain restructuring, the green transition and consumption upgrading, China and Mexico have seen a rapid expansion in trade, an acceleration of investment cooperation, a deepening of industrial chain complementarity, and continuous breakthroughs in emerging fields. This has forged a new, dynamic pattern of mutually beneficial economic and trade relations.

During a meeting with Mexican Foreign Secretary Juan Ramón de la Fuente on May 14, Chinese Foreign Minister Wang Yi said China is ready to work with Mexico to strengthen solidarity and cooperation, enhance communication and coordination within multilateral frameworks, and jointly safeguard each other's legitimate rights and interests. He further emphasized China's commitment to joining Mexico in upholding and practicing multilateralism, resisting and opposing unilateral acts, defending free trade rules, and advocating for an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization.

One of Mexico's major concerns right now may be that the United States-Canada-Mexico free trade agreement is due for review next year. The Sheinbaum administration's stance toward China will arguably affect how Washington addresses Mexico's demands during the process. However, tariffs on China are not necessarily the decisive factor of Washington's attitude, and Mexico also needs to defend its independence and autonomy, as well as uphold international multilateral trade rules.

As Chinese Ambassador to Mexico Chen Daojiang put it: The best way to avoid getting caught in a tariff spiral is to avoid falling into the trap of protectionism in the first place. BR

Copyedited by Elsbeth van Paridon

Comments to lanxinzhen@cicgamericas.com