Mexico Joins US in the US-China Economic War

This week, Mexico’s government announced hundreds of “temporary” tariffs on imports from countries with whom it does not have a trade agreement. The tariffs have been imposed on 544 imported products, including footwear, wood, plastic, electrical material, musical instruments, furniture, and steel, and range from 5% to 50% in size. They have one clear target in mind: imports from China, Mexico’s second largest trade partner, though the word “China” is not mentioned once in the decree.

The latest round of tariffs — which took effect on Tuesday — will apply for two years. They come on the heels of a package of tariffs imposed by the Economy Ministry last month on steel nails and steel balls from China. Mexico’s Economy Minister Raquel Buenrostro, speaking at a Council of the Americas event in Mexico City, said the tariffs were necessary to “prevent unfair competition”:

I assume China will be responding with increased tariffs upon Mexican goods imported to China.


Wrong diagnostic, it’s “Naked Mercantilism.”

The Captain


Thanks TJ.

China was doing “work around” of USA’s trade barriers against China by investing in Mexican homed production for export to USA. This is the countermove, done by Mexico after some “friendly discussion”.

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Mexico wants to own more of its factories. Smart move.

Besides China in the long run will not have the resources needed to maintain commercial ties.

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