China accused Mexico of imposing tariff barriers, though it did not indicate that it would file a complaint with the World Trade Organization.
The Chinese Ministry of Commerce stated that tariff hikes implemented by Mexico effective January 1, 2026, constitute barriers to trade and investment. Consequently, it added that it has the right to adopt countermeasures.
Mexico’s Tariff Barriers
The Mexican government increased tariffs on 1,463 product classifications from countries with which it has no trade agreements to protect 19 strategic industries. Above all, the goal is to replace imports from Asia with domestic production and improve Mexico’s current trade balance.
The measure adjusts tariff rates in sectors such as auto parts, textiles, and steel. This strategy aims to safeguard 325,000 jobs in key manufacturing centers. The average tariff increase will rise from 16.1% to 33.8% to strengthen the domestic market.
According to the Chinese Ministry of Commerce, the tariff increase affects more than $30 billion in exports of Chinese-origin products to the Mexican market. This could result in estimated losses of about $9.4 billion for China’s mechanical and electrical sectors.
The Ministry of Commerce considers that the Mexican government’s measures to increase import tariffs on products from non-free trade partners, such as China, constitute barriers to trade and investment, as stipulated in Article 3 of the Regulations on the Investigation of Barriers to Foreign Trade.
Legal Process
Within the WTO framework, China’s statement constitutes a preliminary legal position. By characterizing certain measures as barriers to trade, it suggests a potential incompatibility with multilateral disciplines, particularly the provisions of GATT 1994.
Furthermore, the reference to the “right to adopt countermeasures” does not imply immediate action. In the multilateral system, such measures are only lawful following a formal procedure, which includes consultations, the establishment of a panel, and eventual authorization to suspend trade concessions.
Consequently, the language used anticipates a possible escalation toward a dispute settlement mechanism. However, it also serves as a tool for exerting pressure in bilateral negotiations, while defining a legal stance in the face of potential trade violations.
China has not announced countermeasures to the tariffs, but the Ministry of Commerce has repeatedly stated that it could take action to safeguard China’s rights and interests.