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

## China Warns Mexico Over Planned Car Tariffs

China is expressing strong disapproval of 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 a significant portion of the country’s imports.
• China’s Response: China’s Ministry of Commerce has warned Mexico to reconsider, emphasizing the importance of their trade partnership. They stated they will take necessary measures to protect their interests.
• Trade Tensions: China views Mexico’s move as potentially harmful to their economic cooperation and a possible result of the U.S. trade war.
• USMCA Influence: The United States-Mexico-Canada Agreement (USMCA) requires a higher percentage of vehicle parts to be made within the region, influencing Mexico’s auto industry.
• Expert Opinions: Some experts suggest that the 50% tariff is lower than tariffs imposed by other countries. They also note that Chinese car exports in Mexico are taking market share from other Asian brands.
• Investment in Mexico: Chinese companies have invested billions in Mexico’s auto industry, with Mexico being a top destination for Chinese car exports.
• Market Impact: Despite the tariffs, some analysts believe the value proposition of Chinese cars in Mexico may remain strong.

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)