China Probing Mexico Tariff Hikes
China is launching a foreign-trade barrier probe on Mexico after the latter country announced plans this month to increase tariffs from certain non-free-trade-agreement countries, including a decision that will reportedly raise tariffs on Chinese cars from 20% to 50%. The investigation also will look into Mexico's duty increases for imports of Chinese textiles, clothing, plastics, steel, home appliances, aluminum, toys, furniture, footwear, leather goods, paper and cardboard, motorcycles and glass.
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The tariff increase "will seriously damage the trade and investment interests of Chinese companies," China's Ministry of Commerce said, according to an unofficial translation. A ministry spokesperson suggested that the Mexico tariffs were influenced by higher tariffs introduced by the Trump administration in recent months.
"China believes that, against the backdrop of the current U.S. abuse of tariffs, all countries should jointly oppose all forms of unilateralism and protectionism, and must not sacrifice the interests of third parties due to coercion," the spokesperson said. "Mexico's unilateral tariff increase, if implemented, would harm the interests of relevant trading partners, including China, even within the [World Trade Organization] framework. It would also seriously undermine the certainty of Mexico's business environment and reduce companies' confidence in investing in the country. China firmly opposes this."
China is expected to conclude the investigation within six months and is accepting public comments for 20 days starting Sept. 25.