International trade

Mexico hits China to please US

Chinese exporters are going to find barriers going up in Mexico, as well as in the United States, as the US pressures its southern neighbour to block the passage of Chinese goods flowing to America through Mexico.

Mexico is set to impose higher tariffs on Chinese imports as part of its 2026 budget proposals, Intellinews reports. It says the move appears designed calibrated to satisfy demands from the Trump administration whilst addressing domestic economic pressures.

“The planned measures, which would target automobiles, textiles and plastics amongst other goods, herald a sweeping change in Mexico’s trade stance towards China, its second-largest trading partner. According to Bloomberg, the proposals are expected to be presented to Congress before September 8 as part of President Claudia Sheinbaum’s broader ‘Plan México’ industrial strategy.”

The report said President Trump had long railed against what he sees as trade “loopholes” that allow Chinese goods to sneak into the US through Mexico. 

During his campaign, he warned of imposing punitive tariffs of up to 250% on Chinese cars manufactured in Mexico for export to the United States, declaring they would “never sell one car in this country.”

“His administration’s push for a ‘Fortress North America’ approach to supply chains has ramped up pressure on Mexico to demonstrate its commitment to reducing Chinese influence in regional trade networks,” it said.