Background and Context
On Thursday, China’s Ministry of Commerce launched an investigation into new tariffs that Mexico plans to impose on products from countries without existing trade agreements. This move comes as Mexico’s President Claudia Sheinbaum’s administration proposed the maximum tariff allowed by the World Trade Organization (WTO) on 1,463 product classifications across 17 strategic sectors. This initiative is part of Mexico’s 2026 Economic Package, which requires legislative approval in 2025.
Impact and Key Changes
The proposed tariffs will affect $52 billion worth of imports (8.6% of total foreign purchases), and they are part of Mexico’s Program for Protection of Strategic Industries. For instance, the tariffs on imported vehicles will rise to 50%, up from a current range of 15-20%. Meanwhile, tariffs on imported auto parts will increase to a range of 10-50%, from the current 0-35%.
China’s Investigation Details
According to a statement, the Chinese government will conduct this investigation following relevant provisions of China’s Foreign Trade Law and the Ministry of Commerce’s Regulations on Investigating Barriers to Foreign Trade.
- Product Categories Affected: Specific product categories impacted include automobiles and parts, textiles, clothing, plastics, steel, home appliances, aluminum, toys, furniture, footwear, leather goods, paper and cardboard, motorcycles, and glass.
- Scope of Investigation: The investigation also covers other trade and investment restrictions Mexico has implemented against China in recent years.
- Investigation Process: The Ministry of Commerce will gather information from interested parties through questionnaires, hearings, on-site inspections, and other suitable methods.
- Timeline: The investigation will conclude within six months from the decision’s publication date. In exceptional cases, the deadline may be extended, but not beyond three months.
Interested parties wishing to submit observations on matters related to the investigation’s opening should send their comments in writing to the Trade Investigation Office of the Ministry of Commerce within 20 days of this notification.
If a party believes that disclosing the provided information may have serious adverse effects, they can request the Ministry of Commerce to treat it as confidential, stating reasons.
Should the Ministry of Commerce accept the request, the interested party seeking confidentiality must simultaneously provide a non-confidential summary of the confidential information. The non-confidential summary must contain sufficient and significant information for other interested parties to reasonably understand the confidential information.
If a non-confidential summary cannot be provided, reasons must be stated. If the information submitted by an interested party does not indicate a need for confidentiality, the Ministry of Commerce will treat it as public information.
