In recent years, the word "tariff" has been mentioned constantly, dominated by the United States and radiating to many countries, causing dissatisfaction among many countries.
Many countries scoffed at such methods, but Mexico chose to do the opposite at this time.
China-Mexico friendly past
In 1972, China and Mexico formally established diplomatic relations, opening the process of more than half a century of cooperation between the two countries.
Since the establishment of diplomatic relations, the two sides have visited each other more than 200 times, from political mutual trust to pragmatic cooperation, and the foundations of friendship have continued to solidify.
China's aid projects to Mexico have long been integrated into local people's livelihood. Mexico City Metro Line 3, which was completed in 1990s, is still the core artery of urban traffic, with an average daily passenger capacity of over 500,000 passengers.
Entering the new energy era, Chinese companies have become important partners in Mexico's energy transformation.
In April 2022, Chongqing, China Electric and Mexican companies joined forces to launch the Peniasco Port Photovoltaic Project.
The largest photovoltaic project in Latin America has a total plan of 1GW, which can not only alleviate the power gap in northern Mexico, but also drive the development of local equipment manufacturing, operation and maintenance and other industrial chains.
In the same year, bilateral trade broke the $100 billion threshold, and Chinese enterprises invested in key areas such as automotive, energy, and communications, directly creating 150,000 jobs.
Especially in the automotive industry, Mexico has become the first stop for Chinese car companies to go offshore, and the local factories of SEA, BYD and other enterprises have driven a hundred supporting parts enterprises to land, making Mexico's position in the North American automotive supply chain increasingly important.
But no one expected that this harmony would encounter a severe test.
Mexican water
In July this year, the United States launched the US-Canada-Mexico Trade Agreement (USMCA) dispute process on the grounds that Mexico's energy reform "favours state-owned enterprises", threatening to impose punitive tariffs.
The United States claims that the nationalization policy implemented by Mexican President Lopez has damaged US$44 billion in investment by American energy companies and demands that Mexico immediately stop "discriminatory measures."
The Trump administration is pressing step by step, throwing out an ultimatum of "90-day buffer period": if Mexico does not cooperate with the technological decoupling from China, it will impose a 30% tariff on exports to the United States.
For Mexico, the U.S. absorbs 80 percent of its exports, a threat sufficient to shake the economic foundations.
On September 3, U.S. Senator Rubio Fei arrived in Mexico to hold closed-door talks with Mack.
According to sources informed, Rubio's demands are specific and strong: in key areas such as semiconductors, new energy batteries, terminate cooperation with Chinese enterprises, prevent China from entering the U.S. market through Mexican transfer goods, in exchange, the United States can be exempt from some tariffs.
In the face of the “carrot barrel”, the Mexican government ultimately chose a compromise.
On September 10, the Ministry of Economy of Mexico suddenly issued an announcement announcing a 50% tariff on 1,371 Chinese goods such as automotive, steel and textiles.
The announcement claimed that this move was to "protect local industries", and it was also optimistic that it would increase fiscal revenue by US $3.76 billion every year.
However, everyone with a discerning eye knows that among the goods subject to tax increase, auto parts alone account for 35% of Mexico's imports to China, and these parts are the core of supporting the operation of local auto assembly plants.
In the face of sudden counter-water from Mexico, China also responded immediately.
China opposed
On September 25, the Ministry of Commerce simultaneously launched two actions under the Foreign Trade Act: first, a comprehensive investigation into Mexico’s barriers to trade and investment, directly indicating the discriminatory nature of its tariff increases; and second, a formal investigation into Mexico’s anti-dumping and rarely included U.S. products in the scope of the investigation.
The embassy in Mexico issued a statement on the same day, and did not shy away from pointing out the behind-the-scenes pusher: "The United States coerces a third party by unilateral bullying, and China will never accept this practice of passing on pressure."
This combination fist hit Mexico’s soft ribs precisely.
Pecan nut is Mexico's sixth largest export agricultural product, with annual exports to China exceeding US $200 million. The simultaneous investigation of the operation of American products makes Mexico completely lose the possibility of re-export evasion.
More deadly is the automotive industry, China supplies batteries, chips and other parts once due to the increase of taxes, Mexico's 12 automotive assembly plants will face shutdown, directly threatening tens of thousands of workers employment.
Within just a week, there were also customs delays in Mexican oatmeal exports to China, which, despite its only 1.27% market share in China at the time, lost this fastest-growing market, which is not a small thing for the ink economy, which relies on agricultural exports.
Internal pressure quickly erupted.
The Mexican Automobile Industry Association urgently sent a letter to the Presidential Office, warning that “the discontinuation of parts will cause the entire industry to shut down production”; Beigeo growers gathered in the capital to protest, saying “the United States did not subsidize, but the Chinese market lost”; Chinese companies also suspended new investment plans, and the equipment delivery of the Peniasco Port PV project stalled once.
Economic data are more intuitive: In late September, the ink manufacturing PMI dropped from 51.2 to 47.8, a new low in two years.
In the face of domestic diplomacy, the Mexican government had to move quickly.
On October 9, Mexico’s President Simbaum openly addressed a routine press conference, stressing that “Mexico and China’s relations have always been stable, and we value this cooperation,” and announced the immediate suspension of the tariff hike program, saying “we will resolve the differences through consultation with China.”
This 29-day trade farce ended hastily with Mexico's compromise.
conclusion
Reviewing the entire incident, Mexico's misjudgment is obvious. The United States has not fulfilled the tariff exemption from beginning to end, and underestimated the depth of binding the China-Mexico industrial chain, thinking that "sacrificing China" can please the United States.
China’s countermeasures are not aimed at the friendship, but are a clear response to the “forced stand-up”: friendship is worth cherishing, but core interests are not to be violated.
For Mexico, the lesson left behind by this turmoil is profound: in the game of major powers, selling out partners in exchange for short-term benefits will only backfire itself in the end.
references
Yangzi Evening News--2025 - 09 -12 "Mexico plans to impose 50% tariffs on China and other countries. China responds: I hope Mexico will be cautious and think twice before acting"2025-09-27 China launches trade investigation into Mexico, “warns it must not succumb to US pressure”