China says it has right to retaliate against Mexico’s tariff hikes

BEIJING, March 25 (Reuters) – China said on Wednesday that Mexico’s trade measures against it, including tariff increases, constitute trade and investment barriers and that it had the right to take countermeasures. 

The import duty hikes affect more than $30 billion worth of Chinese exports to Mexico, and could lead to estimated losses of about $9.4 billion to China’s mechanical and electrical sectors, the Chinese Ministry of Commerce said in its conclusion of an investigation into the measures. 

About $9 billion in those losses would be borne by China’s automobile and auto parts industries, as Mexico was China’s biggest vehicle export destination in 2025, the ministry said, citing customs data and industry estimates. 

Mexico announced in December steep tariff increases on imports from China and other countries without free trade agreements with Mexico – up to 35% on the majority of products. The move was seen by analysts as an attempt to placate the United States, whose president levied significant tariffs on Chinese goods. 

Beijing has not announced countermeasures to the tariffs, but the commerce ministry has repeatedly said it could take steps to safeguard China’s rights and interests.

The Mexican tariff increases would also hurt China’s exports of some metal and chemical products as well as textiles and light industrial products, the ministry said.

Some non-tariff trade measures that Mexico adopted in recent years, such as complex customs inspection requirements, could also restrict Chinese companies’ investments and operations in the Latin American country, according to the ministry.

(Reporting by Yukun Zhang, Shi Bu and Ryan Woo; Editing by Jacqueline Wong and Muralikumar Anantharaman)

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