China Threatens Mexico Over Proposed Tariff Increase on Asian Vehicles

Beijing, Sept. 12, 2025 — China issued a stern warning to Mexico following a decision by the country to increase tariffs on automobiles exported from Asia, and especially China, to 50% from 20%.

In a statement on Thursday evening, China's Commerce Ministry called on Mexico to "think twice before acting" and not take action that can hurt bilateral trade. The ministry emphasized that both countries are "mutually important trade partners" and added that Beijing will take measures necessary to protect its interests in case the tariffs are carried out.

Mexico's Economy Secretary Marcelo Ebrard affirmed the proposed increase in Wednesday's statement, adding that the move forms part of a larger budget strategy. The tariff hike is yet to be approved by Congress and would become effective 30 days upon approval.

China accused it of being protectionist, cautioning that free trade must not be sacrificed in the midst of international trade tensions. Mexico, however, is trying to shield foreign trade pressures while safeguarding its national automobile industry, the nation's largest employer.

Chinese manufacturers have invested over $7 billion in Mexico in the past two years, advocacy groups said, although various projects are still not finished. The move comes as Chinese electric vehicle exports expand, fueling global trade tensions and triggering such protectionism in Brazil and Russia.