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Beijing Asked Claudia Sheinbaum’s Government to Reconsider Before Approving Hike in Tariffs on Countries Without Trade Agreement with Mexico. The Proposal Impacts About US$ 52 Billion in Imports and Includes Cars, Steel, Textiles, Toys, and Appliances.
China has raised its tone and warned Mexico to reconsider the plan to increase import tariffs on countries without a trade agreement, with direct impact on cars manufactured in China. The Chinese Ministry of Commerce stated that unilateral measures would be seen as a concession to external pressures and could be met with retaliation. The message came after Mexico City included in the 2026 Budget a package that raises rates up to 50% for cars, as part of a broad reconfiguration of tariff policy.
President Claudia Sheinbaum and Minister of Economy Marcelo Ebrard argue that the adjustment protects industry, is consistent with WTO rules, and does not target a single country. Sheinbaum stated that Mexico is not seeking conflict and has opened dialogue channels with affected governments, including Beijing.
The proposal impacts approximately US$ 52 billion in external purchases and covers 1,400 to 1,463 tariff classifications in sensitive sectors, according to the government and independent analyses. The market reading is that the measure also responds to the environment created by new U.S. tariffs and anticipates discussions for the review of the USMCA in 2026.
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For Beijing, the moment calls for multilateral coordination and not “sacrifice of third parties by coercion.” The official Chinese tone suggests that countermeasures are on the table if the increase goes ahead in its current form.
What Has Changed in Mexico’s Tariff Plan
The tariff package was sent to Congress as part of the 2026 Economic Package and expands initiatives already adopted since 2023 and 2024 to restore protection for local industrial chains. The novelty is the depth and breadth of the list, which includes complete cars, auto parts, textiles, footwear, steel, appliances, and toys.
In the specific case of Chinese-origin cars, the tariff could go up to 50%, compared to much lower previous percentages. The Economy Ministry estimates that the measure protects hundreds of thousands of industrial jobs and helps reduce imports with predatory pricing.
Although critics view it as an attempt to “appease the U.S.,” the Mexican government maintains that the strategy is domestic, part of the Plan Mexico for reindustrialization, and is being communicated to all partners to avoid escalation.
How Beijing Sees the Measure and Where It Can Retaliate
The Chinese Ministry of Commerce stated that countries should “strengthen communication and coordination to safeguard free trade and multilateralism”, and that unilateral increases will be interpreted as giving in to pressures. The statement, with harsh language, hints at retaliation if Chinese cars are the most penalized.
Possible retaliations include reviewing licenses and inspections on Mexican exports to China, customs delays, and anti-dumping investigations in sectors where Mexico is competitive, such as agri-foods and industrial inputs. This reading is shared by trade analysts who see the dispute as part of a global repositioning of supply chains.
To mitigate risks, Mexican diplomacy has signaled willingness to engage in dialogue with Beijing and other Asian capitals. The objective is to calibrate timelines and scopes while maintaining the signal of domestic protection without triggering a tariff war.
U.S., USMCA 2026 and the Geopolitical Reading of the Gesture
The backdrop is the U.S. tariff hardening and the fear of triangulation of Chinese products via Mexico to the U.S. market. By raising its own tariffs, Mexico City aims to show that it combats trade diversion and does not seek to become a shortcut to circumvent U.S. barriers.
The movement also comes on the eve of the 2026 USMCA review, when Washington and Ottawa will push for commitments regarding rules of origin and regional content in the automotive sector. A Mexico that is more restrictive on imports from countries without agreements could facilitate negotiations with partners.
Mexican authorities emphasize that the change respects the WTO and aligns with practices of other countries. Nevertheless, Sheinbaum’s administration seeks to depoliticize the topic to avoid contaminating relations with China, now a central supplier to the Mexican industry.
Impact on the Automotive Sector and Consumers
The pressure falls on Chinese brands that have rapidly gained ground in Mexico and now account for about one-fifth of new car sales, particularly for more affordable and entry-level electric models. With tariffs at 50%, part of this portfolio may lose competitiveness or shift to local production in the medium term.
The BYD, for example, has become one of the symbols of Chinese expansion and could be one of the most affected, according to analysts and industry reports. Local and traditional manufacturers are likely to gain momentum in the short term, but importers warn of price pressures on consumers.
For the Mexican industry, which exports the majority of its production, the measure could reorder supply chains and stimulate regional content. For the retail sector, the challenge will be to maintain price options without sacrificing quality, especially in entry-level hatches and SUVs where Chinese brands have advanced.
Is Mexico protecting its own industry or yielding to U.S. pressure by targeting Chinese cars? Will China retaliate immediately or opt for dialogue to preserve supply chains and prices for consumers? Leave your comment and let us know which side you are on in this dispute.
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