United States Pressures Mexico to Impose Tariffs on China

The Trump administration has urged Mexico to impose tariffs on Chinese imports as part of ongoing negotiations to prevent the United States from imposing duties on Mexican goods starting March 4. While Mexico did not commit to specific actions regarding China, both parties agreed to establish a bilateral working group to continue discussing trade and tariff policies.

During a meeting on Feb. 20 in Washington, US Commerce Secretary Howard Lutnick conveyed this position to the Mexican delegation led by Minister of Economy Marcelo Ebrard. Also present were Jamieson Greer, nominee for US Trade Representative, and White House economic advisor Kevin Hassett.

With the March 4 deadline fast approaching, Guillermo Barba, Chief Economist, Top Money Report, stated that Mexico has limited options and will likely need to align with US demands. "Mexico has little room for maneuver. Continued cooperation with the United States, which essentially means negotiating within the framework of Trump's demands, will likely require the country to impose tariffs on Chinese imports," Barba explained.

Pressure Against Asian Trade Partners

For months, US officials have voiced concerns over China’s expanding economic footprint in Mexico. Allegations suggest that Chinese goods are being rerouted through South American companies to bypass trade restrictions. However, Ebrard has strongly refuted these claims, emphasizing that while Mexico is China’s second-largest trading partner in Latin America, it accounts for only 0.4% of Chinese investment in North America.

Previous reports indicate that the United States is also pressuring Mexico to exit the Trans-Pacific Partnership (TPP), a trade pact it joined in 2018 to strengthen ties with Asia-Pacific economies by eliminating tariffs and expanding market access. However, the agreement has disproportionately benefited Asian nations, particularly those with strong economic links to China.

Industry leaders, particularly in the steel sector, support the US position, arguing that the TPP has yielded minimal benefits for Mexico’s steel and aluminum exports while favoring Asian producers. “Withdrawing from the agreement would not be a major challenge and would provide greater certainty to US producers that Chinese steel is not being funneled through Mexico,” stated Jorge Guajardo, International Trade Consultant, in an interview with Reforma.

According to Banxico, China accounted for just 1.7% of Mexico’s exports in 2023, totaling US$10.06 billion, while representing 19.1% of Mexico’s imports at US$114.19 billion, resulting in a trade deficit of US$104.13 billion. Mexican Finance Minister Rogelio Ramírez de la O underscored the lack of trade reciprocity, stating, “China sells, but does not buy. This has fueled growing sentiment in both the United States and Mexico to protect our domestic industries.”