China warns Mexico to ‘think twice’ before raising tariffs, threatens countermeasures

## China Warns Mexico Over Planned Car Tariffs

China is expressing strong concern over Mexico’s plan to significantly increase tariffs on cars imported from Asia, particularly China. Here’s a breakdown of the situation:

• Mexico’s Plan: Mexico intends to raise tariffs on Asian-made cars from 20% to 50%. This move is part of a broader budget proposal affecting billions of dollars in imports.
• China’s Response: The Chinese Ministry of Commerce has warned Mexico to reconsider, stating that China will “take necessary measures” to protect its interests. They emphasized the importance of their trade partnership and expressed a desire to avoid disruption.
• Context of USMCA: Mexico benefits from the USMCA trade agreement with the US and Canada, which requires a higher percentage of vehicle components to be made in the region.
• Industry Impact: Mexico’s auto industry is a major employer. The proposed tariffs could impact Chinese car exports, which have been gaining market share, often at the expense of other Asian brands.
• Expert Opinions: Some experts suggest that even with the increased tariffs, the value proposition of Chinese cars may remain attractive. Others point out that China has not reacted the same way to tariffs from other countries.
• Investment in Mexico: Chinese companies have invested billions in Mexico’s auto industry, but some projects, like a BYD factory, are still pending.

For more details, you can read the original article on CNBC: [https://www.cnbc.com/2024/08/09/china-warns-mexico-over-planned-car-tariffs.html](https://www.cnbc.com/2024/08/09/china-warns-mexico-over-planned-car-tariffs.html)