Mexico Playing the Tariff Card Against China? - The Ripple Effects of Mexico's New Tariffs on China: Balancing Domestic Industry Protection and Trade Strategy Between the U.S. and China

On September 4, 2025, Mexican President Sheinbaum revealed that the country is considering the introduction of tariffs on imports from countries without a Free Trade Agreement (FTA). The primary focus is on China, with the aim of protecting and strengthening domestic industries under the "Mexico Plan." This move is influenced by the six-year review of the USMCA and pressure from the United States regarding tariffs on Mexico. Recently, Mexico has selectively initiated defensive measures, such as deciding on compensation (effectively additional tariffs) for Chinese-made shoes. Sectors with intense price competition, like the automotive and textile industries, are expected to be significantly impacted, with concerns about short-term price increases coexisting with hopes for job creation and investment attraction. On social media, there is a mix of support for protecting domestic manufacturing and caution regarding the cost of living. China has criticized these measures as "protectionism." Moving forward, the focus will be on three scenarios: phased introduction in limited sectors, reorganization of the North American supply chain, and friction in relations with China.