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Mexico is reportedly preparing to impose new tariffs on Chinese imports after pressure from the United States.

Some shit you should know before you read: If you’re unaware, China has become one of Mexico’s largest trading partners, with bilateral trade exceeding $100 billion in 2023, and Chinese exports to Mexico totaling over $51 billion (accounting for nearly 20% of Mexico’s total imports that year). These exports include a wide range of products, from electronics to vehicle parts. In recent years, Chinese companies have significantly increased their presence in Mexico by investing in local manufacturing facilities, particularly in the automotive sector.  

What’s going on now: First reported by Bloomberg and picked up by Chinese state-controlled media, Mexico is drafting a proposal to impose steep new tariffs on key Chinese imports, including vehicles, textiles, and plastics, as part of its 2026 federal budget, signaling a significant shift in its trade policy amid rising pressure from the United States. The plan, still in development, is expected to be submitted to Mexico’s Congress by September 8 and would build on earlier measures targeting low-cost Chinese goods entering the Mexican market.

The tariff push is being shaped in part by President Donald Trump, who has repeatedly accused Chinese companies of exploiting loopholes in the USMCA by manufacturing goods in Mexico and exporting them tariff-free into the US. Under the proposed changes, Mexico would introduce higher duties to curb these flows and realign its trade stance with US demands for a more protectionist regional economy—a concept Trump has branded “Fortress North America.”

Beyond the auto sector, US officials have raised alarm over China’s deepening trade and infrastructure ties across Latin America, which they argue pose strategic threats to US geopolitical interests. Earlier this year, the US raised concerns over China’s growing influence in the Panama Canal, resulting in the Panamanian government agreeing to limit China’s role.

This all comes as China’s Foreign Ministry has condemned Mexico’s proposed tariff plan, calling it a coercive move driven by US pressure that threatens to undermine China’s legitimate trade interests. During a press briefing in Beijing, ministry spokesperson Guo Jiakun stated that China “firmly opposes moves that are taken under coercion to constrain China or undermine China’s legitimate rights and interests under any pretext.” He urged Mexico to uphold its policy independence and warned against adopting “unilateralism, protectionism, and discriminatory measures in any form.”

Chinese state media have echoed these concerns, portraying the Mexican proposal as part of a broader US-led strategy to economically isolate China under the guise of trade enforcement.

There’s been no comment from the US or Mexico.