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.”
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.
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.
“China is likely to view this as a successful effort by the US to enlist other countries into joining the US’ trade actions against China,” said Stephen Olson, a former US trade negotiator and visiting senior fellow at the ISEAS – Yusof Ishak Institute.
“As such, China is likely to take this very seriously. I expect it to apply maximum pressure on Mexico and any other efforts to create a ‘Fortress North America’.”
Beijing warned other countries not to sign trade deals at China’s expense earlier this year, as reports swirled that Washington was pressuring third countries to take action against Chinese exporters.
Even as Trump’s government has tried to de-escalate tensions with China and negotiate on trade, it has “not taken the pressure off other countries to limit their ability or their role as a platform or springboard to the US market”, said Alfredo Montufar-Helu, China-based managing director at Ankura Consulting.
The Mexican Senate’s 76-5 approval of the tariff bill hits China along with other Asian countries that have no trade agreements with Mexico. Those include India, South Korea, Thailand and Indonesia.
China has consistently opposed all forms of unilateral tariff increases and hopes Mexico will correct this erroneous practice
China’s Ministry of Commerce
Chinese exports to Mexico are led by machinery and mechanical appliances followed by automobiles and auto parts, according to the Dutch investment bank ING. The automotive sector faces the highest tariffs at 50 per cent.
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