China warns Mexico to 'think twice' before raising tariffs, threatens countermeasures
Original story by
CNBC•Sep 12•Economics, Business, Trade
📰 Article Summary
China's Ministry of Commerce has issued a warning to Mexico regarding its plans to increase tariffs on cars made in Asia to 50%. The ministry emphasized the importance of Sino-Mexican trade relations and expressed concerns that tariff hikes could harm economic cooperation. Mexico's Secretary of Economy, Marcelo Ebrard, confirmed that the proposed tariff increase is pending Congressional approval and will take effect 30 days later. China reacted by stating it would take necessary measures to protect its interests amidst increasing trade tensions with the U.S.
📌 Key Facts
- Tariff Increase: Mexico plans to raise tariffs on Asian-made cars from 20% to 50%, pending Congressional approval. This significant hike raises concerns about the impact on trade relations with China.
- China's Response: China's Ministry of Commerce warned Mexico to be cautious about these tariff hikes, stating that it may respond with countermeasures. The ministry underlined the importance of their mutual trade relations.
- Trade Relations: Mexico and China have a strong trade partnership, particularly in the automotive sector. The increase in tariffs could jeopardize this partnership, as Mexico's auto industry relies heavily on imports.
- Historical Context: Since the adoption of the USMCA trade agreement, Mexico has benefited from tariff-free access to the U.S. market, creating potential conflicts with increased tariffs on imports from Asia.
- Investment Trends: Over $7 billion in investments have been made by Chinese auto manufacturers in Mexico since mid-2022, highlighting the growing economic ties despite potential tariff challenges.
📂 Article Classification
Topic Tags: Trade Relations and Tariffs
📍 Location
N/A, Mexico
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