China Launches Probe Into Mexico’s Tariff, Investment Barriers

China’s Ministry of Commerce (MOFCOM) announced on Sept. 25 that it has initiated a trade and investment barrier investigation into Mexico’s restrictive measures against Chinese products and companies. The probe was triggered after MOFCOM’s Trade Remedy and Investigation Bureau received evidence indicating that Mexico intends to raise tariffs on imports from China and other non–free trade agreement (FTA) partners.

According to the ministry, Mexico’s proposed tariff hikes, published in the country’s Official Gazette of the Federation (DOF) on Sept. 9, 2025, along with other restrictive trade and investment measures adopted in recent years, may constitute violations under the Foreign Trade Law of the People’s Republic of China and the Regulations on Investigation of Foreign Trade Barriers.

MOFCOM stresses that the decision seeks to safeguard the legitimate rights and interests of Chinese industries, adding that the investigation will be carried out in an objective and fair manner. The ministry may take “necessary measures” depending on the outcome of the probe.

In a related statement, a MOFCOM spokesperson criticizes unilateral tariff hikes amid global trade tensions. “In the current context of the United States’ abuse of tariff measures, all countries should oppose unilateralism and protectionism, and must not sacrifice the interests of third parties under coercion,” the spokesperson says.

The spokesperson further warns that if Mexico implements additional tariffs on Chinese products, even within the framework of the World Trade Organization (WTO), such actions could harm Mexico’s own business climate, reduce certainty for investors, and undermine confidence among international enterprises considering operations in the country.

China reaffirmed that it firmly opposes unilateral tariff actions and that the probe is intended to protect fair trade and investment conditions.

Mexico’s Tariff Initiative

On Sept. 11, Mexico’s Ministry of Economy submitted a proposal to Congress under the 2026 Economic Package, seeking to raise tariffs on 1,463 lines, covering automobiles, toys, steel, textiles, plastics, and other goods, from countries without FTAs. The new rates would range from 10% to 50%, potentially affecting US$52 billion in imports, equivalent to 8.6% of Mexico’s total imports, MBN reports.

The proposal places particular emphasis on the automotive sector. Tariffs on Chinese vehicles stand at around 20% but could rise to 50%, while duties on auto parts could increase from 35% to 50%. Mexico argues the measures are necessary to defend national industry against unfair competition, but Beijing has strongly rejected the plan.

“China firmly opposes any coercion by others to impose restrictions on China under various pretexts,” says Lin Jian, Spokesperson, China’s Foreign Ministry, adding that Beijing advocates for inclusive globalization.

Business Pushback and Diplomatic Responses

On Sept. 12, the Mexico-China Chamber of Commerce and Technology urged the Mexican government to reconsider the planned hikes, warning they could distort the domestic market, fuel inflation, and undermine competitiveness. The Chamber called for a “gradual and fair approach” and pledged to engage in dialogue with President Claudia Sheinbaum’s administration.

That same day, Sheinbaum stressed that Mexico seeks dialogue, not conflict with China. She argued the tariffs fall within World Trade Organization (WTO) rules and are part of the government’s broader Plan México, aimed at strengthening national production and consumption. Minister of Foreign Affairs Juan Ramón de la Fuente also emphasized ongoing communication with Chinese and other foreign envoys to explain Mexico’s strategy.

China’s Warning Ahead of the Probe

On Sept. 15, MOFCOM responded to reports that Mexico planned to impose tariffs on 1,463 tariff lines, noting that such measures could be seen as “appeasement and a concession to unilateral bullying” in the context of US pressure.

A spokesperson warned that any unilateral tariff hikes, even within WTO rules, would harm China’s trade interests and damage Mexico’s investment climate by reducing certainty for foreign companies. “China and Mexico are important economic and trade partners, and we do not wish to see bilateral cooperation adversely affected,” the spokesperson added.