Overview:

The Mexican government has proposed tariffs on countries with which it does not have trade agreements. China is one of the nations affected. To fully understand this move, it’s helpful to first explore the history of trade between Mexico and China.

Background on Tariffs

In 2025, global trade discussions have intensified. Negotiations between major economies have grown increasingly tense. Just two days ago, Mexico announced new tariff proposals as part of its budget submission. If passed, these tariffs would have significant implications for global trade.

Countries That Would Be Affected

Mexico’s proposed tariffs would primarily target countries without a trade agreement with Mexico. Since China and Mexico do not currently have a trade deal, China is expected to be among the most affected.

History of China–Mexico Trade

The Beginning
Trade between China and Mexico can be traced back to the 16th century with the Manila Galleon route, which connected Asia and the Americas through Acapulco. China exported silk and porcelain, while Mexico exported silver.

Late 20th Century
In the 1970s, under President Luis Echeverría, Mexico officially established diplomatic relations with China. This opened the door for economic cooperation and agreements, including the “Comprehensive Economic Cooperation Plan.”

21st Century
Following China’s admission into the World Trade Organization (WTO) in 2001, trade between the two countries expanded rapidly, particularly in technology, mining, and renewable energy sectors.

The United States Factor

Both China and Mexico share long-standing trade relationships with the United States. Historically, the U.S. considered China its top trade partner. However, in 2023, Mexico surpassed China as the leading trade partner of the United States, according to U.S. Department of Commerce data released in 2024.

Despite these shifts, China and Mexico still do not have a formal trade agreement in place.

Proposed Tariffs

Mexico’s plan includes tariffs as high as 50% on goods such as:

Cars
Auto parts
Steel
Textiles

Why Mexico is Proposing These Tariffs

According to Marcelo Ebrard, Mexico’s Secretary of the Economy, the tariffs target Chinese vehicles due to their below-market pricing.

“Why? Because the prices at which they are arriving in Mexico are below what we call reference prices,” Ebrard stated. “The main objective is to protect jobs.”

Mexico’s move also aligns with ongoing trade negotiations with the United States. With the U.S. having pursued a trade war with China in recent years, Mexico’s tariff proposal could be seen as both an economic safeguard and a diplomatic signal.

Sources

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