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US-China trade war
EconomyChina Economy

Mexico’s tariffs on China aim to placate US – but could backfire: analysts

Beijing sees Mexico’s move as driven by a wider US pressure campaign – and could take retaliatory measures, analysts say

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Mexican President Claudia Sheinbaum proposed tariffs on goods from China and other Asian markets in the name of protecting local industries. Some analysts see the move as a response to US pressure. Photo: TNS
Ralph JenningsandKandy Wong

Mexico’s move to place tariffs of up to 50 per cent on Chinese and other Asian goods underscores US efforts to pressure other countries to take action against China – and Beijing may well retaliate, analysts said.

The Mexican Senate on Wednesday approved duties between 5 and 50 per cent on 1,463 product categories – including auto parts, textiles and plastics – starting from January 2026. President Claudia Sheinbaum had proposed the tariffs in the name of protecting local industries, subject to legislative approval.

“The US has concerns about China using Mexico as a back door to the US market,” said Jayant Menon, a senior fellow at the ISEAS – Yusof Ishak Institute in Singapore. “This clearly shows (Mexico) wants to show the US they’re willing to clamp down.”

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Washington has put Mexico under growing pressure since US President Donald Trump’s return to office, as Chinese investment flows into Mexican factories making auto parts for major brands such as Tesla.
Trump has threatened to raise tariffs on Mexico multiple times in recent months, citing several concerns.
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Another source of leverage is the July 2026 review of the United States-Mexico-Canada Agreement, a deal that underpins Mexico’s trade flows with the US, which takes about 80 per cent of the country’s exports, analysts said.
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