(Yicai) Sept. 12 -- China, which counts Mexico as its largest export destination the first half year, has strongly opposed the North American country’s plan to impose tariffs of up to 50 percent on imports including automobiles, steel, textiles, and toys from China and other Asian nations, according to the foreign ministry.

Chinese Foreign Ministry Spokesperson Lin Jian said yesterday that China firmly opposes the move and will resolutely defend its rights and interests in accordance with the situation.

On Sept. 9, Mexican President Claudia Sheinbaum submitted a proposal to the Chamber of Deputies seeking approval to raise import tariffs on products from countries with which Mexico does not have a free trade agreement, including China. The new tariff policy, if passed, would take effect by Dec. 31, 2026.

Lin emphasized that China consistently advocates for inclusive and mutually beneficial economic globalization while opposing all forms of unilateralism, protectionism, and discriminatory practices. He said China rejects any form of coercive restrictions.

He also noted that China and Mexico, both key members of the Global South, share a trade relationship grounded in mutual benefit and win-win cooperation. China values its bilateral relationship with Mexico and hopes the two countries can jointly promote global trade and economic recovery, Lin added.

Hiked Car Export Costs

In the automotive sector, Mexico intends to increase tariffs on imported vehicles from the current 20 percent to 50 percent, while auto parts would face a hike from 10 percent to 50 percent.

Analysts said the changes would raise the cost of Chinese vehicle exports to Mexico, eroding their competitive pricing. 

Major Chinese automakers have yet to comment publicly on the proposal.

Chinese automotive parts suppliers with manufacturing operations in Mexico -- including Tuopu Group, Sanhua Intelligent Controls, and Yinlun Machinery -- could face supply chain disruptions due to increased logistics costs. Automakers such as BYD and Chery Automobile, which have announced plans to build factories in Mexico, may be prompted to reassess their investment strategies in light of the new policy direction.

Mexico sold nearly 1.5 million vehicles last year, up almost 10 percent from the previous year. Sales in the first half of this year reached 709,300 units, a slight dip of 0.2 percent from a year earlier.

Mexico is China’s largest export destination in the first eight months of this year, overtaking Russia by importing 177,000 vehicles, according to data from the China Passenger Car Association. Last year, China exported 445,000 vehicles to Mexico, ranking second behind Russia. Industry insiders estimate that Chinese automakers currently hold a 13 percent to 15 percent share of Mexico’s auto market.

Mexico’s proposal also includes a 35 percent tariff on steel, toys, and motorcycles, and an increase in textile tariffs from 10 percent to 50 percent.

Editor: Emmi Laine