The Leopard 8 is one of the three cars BYD’s Fang Cheng Bao brand unveiled in Shenzhen on April 16, 2024.CNBC | Evelyn ChengBEIJING — China’s Ministry of Commerce has warned Mexico of countermeasures as the country plans to hike tariffs on Asia-made cars to 50%.We “hope Mexico will be extremely cautious, and think twice before acting,” the ministry said in a statement late Thursday, translated by CNBC.”China and Mexico are mutually important trade partners,” the ministry said. “We are not willing to see both sides’ economic cooperation affected by this situation.”Mexico’s Secretary of Economy Marcelo Ebrard told reporters Wednesday that the country planned to raise tariffs on vehicles coming from Asia, particularly China, to 50% from the current 20%. The increased duties still need Congressional approval, and the tariffs would take effect 30 days later, he said.”China will take necessary measures … to resolutely safeguard its legitimate rights and interests,” China’s statement read.Faced with “U.S. abuse of tariffs,” countries should safeguard free trade, China said. “The coercion of others should never sacrifice third-party interests.”Mexico’s planned China tariffs are part of a broader federal budget proposal that would affect $52 billion worth of the country’s imports, according to a report from The Wall Street Journal.In the ongoing trade tensions with the U.S., China’s countermeasures have included restrictions on exports of minerals critical to the production of cars and other advanced technology. Chinese companies have come to dominate the supply chain for many of those minerals.Sitting on the southern border of the U.S., Mexico benefits from the United States-Mexico-Canada Agreement (USMCA) for tariff-free trade among the countries. But USMCA, which took effect in 2020, requires a far greater portion of a vehicle to be made in the region than the North American Free Trade Agreement agreement it replaced.Mexico’s auto industry is the country’s largest employer, Jorge Guajardo, Washington, D.C.-based partner at Dentons Global Advisors, previously told CNBC. He is a former ambassador of Mexico to China.”At 50 percent, the tariffs are lower than the 60 percent tariffs Russia applies to Chinese cars, …
