Hello everyone, I am Lu Lu. Today we will talk about a country with the highest tariffs on China.
Sometimes, Mexico, a good neighbor of the United States, announced that it will impose a tariff of up to 50% on Chinese automobiles and other products, with more than 1,400 affected products. What is interesting is that Mexican President Sinbaum declared that "we do not want to conflict with any country."
Mexican President Sinbaum
In the face of public opinion pressure, Sinbaum denied "pleasing the United States", saying that tax hikes were part of the "Mexican plan", which was brewing long before Trump won the election, but this defense was obviously very pale. You should know that the tax increase list accurately covers China's advantageous areas of export to Mexico, including automobiles and parts, textiles, toys, etc., which account for the largest import volume of Mexico.
Data shows that China exported 177,000 cars to Mexico in the first eight months of this year. China is Mexico's largest automobile supplier, which will undoubtedly hit the China-Mexico automobile trade hard.
Compared with Sinbaum, Mexican Economic Minister Ebrard's remarks are even further and further on the wrong path. He claimed that "the prices of Asian cars are too low to distort the market", and specifically mentioned "Chinese cars", saying that tariffs on Chinese cars should be added to the "highest level" allowed by the WTO.
Mexico Ebrad
Although Sinbaum claimed that it was not to "please the United States", the Mexican government did nothing to please the United States. Recently, the Trump administration has continuously pressured Latin American countries to choose sides between China and the United States, and Mexico's trade deficit with China has doubled in a decade, so China's investment in Mexico has long become a "thorn in the side" of the United States.
In response to Sinbaum's disagreement, the Ministry of Commerce of China responded with the two idioms "Be cautious and think twice before acting", which not only expressed the attitude that China and Mexico are important economic and trade partners and are unwilling to see the impact of the economic and trade cooperation between the two sides, but also made it clear that China will take necessary measures based on actual conditions and resolutely safeguard its legitimate and legitimate rights and interests.
The Mexican Chinese Chamber of Commerce also questioned the tax increase plan, saying that raising taxes on goods such as clothing, footwear and household appliances will "damage the interests of Mexican domestic consumers", especially in the context of high inflation, which will increase the burden of people's livelihood. The Chamber of Commerce specifically reminds that tariff barriers will also hinder Mexico's energy transformation process.
Mexico raises tax on Chinese cars
The warning from the Mexican Automobile Dealers Association is more direct, saying that as inventory runs out, car prices will rise sharply, which will increase significantly for the Mexican people who are already under inflationary pressure, which is contrary to the global energy transition trend.
In addition, in addition to Chinese brands, cars produced and exported by GM and Ford in the United States will also be affected by the United States. Data shows that GM's factories in China are the largest source of China's export of cars to Mexico. Mexican experts pointed out incisively: This is a protectionist measure that is very consistent with Trump's style, and Mexican consumers and producers will feel the price.
Although tax increases may bring short-term impact, Chinese companies are not unlicensed to play. Experts point out that there is still room for maneuver for Chinese automakers operating globally. Chinese automakers can adjust their production bases and evade tariffs through third-country assembly.
U.S. President Trump puts pressure on Mexico to increase taxes on China
In short, Mexico's attempt to sacrifice trade interests with China in exchange for favorable feelings from the United States is essentially a short-sighted act of drinking poison to quench thirst. History has proved many times that appeasement and compromise on unilateral bullying will only encourage its arrogance and ultimately it will not be worth the loss. China's statement of "cautious and careful, thinking twice before acting" is not only a warning to Mexico, but also a sincere advice on long-term friendly cooperation between China and Mexico. I hope Mexico can truly see the general trend and return to the correct track of mutual benefit and win-win results.
