China and Mexico Trade Talks Amid Tariffs

Por Colleen Howe

BEIJING, Feb 12 (Reuters) – China’s top trade negotiator Li Chenggang met Mexico’s Undersecretary of Industry and Commerce Vidal Llerenas in Beijing on Monday in the first round of face-to-face talks since Mexico imposed higher tariffs on Chinese imports, prompting warnings from Beijing.

The two countries had an in-depth exchange on bilateral economic and trade relations and other issues, the Chinese Ministry of Commerce said in a statement on Thursday.

In December, Mexico announced sharp increases in tariffs on China and other countries without free trade agreements with Mexico, most of them up to 35%. Analysts interpreted this measure as an attempt to appease US President Donald Trump, who imposed significant tariffs on Chinese products.

Mexico’s tariffs apply to thousands of products, including cars, auto parts, textiles, clothing, plastics and steel.

Mexican President Claudia Sheinbaum said the tariffs are intended to increase domestic production and correct trade imbalances. The tariffs are expected to have the greatest impact on China, which is Mexico’s second largest trading partner after the United States.

China’s Ministry of Commerce had warned Mexico to “think twice” before imposing tariffs and said it would take measures in response to safeguard its legitimate rights and interests, but has so far announced no countermeasures.

Separately, China’s leading automaker, BYD, said in 2024 that it was considering setting up a factory in Mexico, although the FT reported in March that China was delaying approval of the plant for fear of technology leakage to the United States.

The talks between China and Mexico come as the United States, Mexico and Canada prepare to jointly review their free trade agreement before July 1.

The top US trade negotiator has said the pact is not prepared to deal with rising exports and investment from non-market economies such as China in the region, suggesting the US could push for stricter rules on Chinese-made goods in a new deal. This would make it difficult for Chinese companies to use Mexico as a base to export to the United States.

(Reporting by Colleen Howe; editing by Christian Schmollinger and Jacqueline Wong; Editing in Spanish by Ricardo Figueroa)