The Chinese Ministry of Commerce issued a statement on March 25th, accusing Mexico’s restrictions related to China of creating trade and investment barriers, threatening to take retaliatory measures. In response, Mexico stated that it has the right to protect its industries from unfair competition – emphasizing that Chinese enterprises with government subsidies have significantly harmed local businesses’ interests.
Starting from January 1st this year, Mexico imposed tariffs ranging from 5% to 50% on 1463 types of goods from China. On March 25th, the Chinese Ministry of Commerce released the final conclusion of the investigation into Mexico’s restrictions on China-related trade and investment barriers. China stated that these measures have affected over $30 billion of Chinese exports, causing the Chinese electromechanical industry to suffer losses of approximately $9.4 billion.
Mexican Minister of Economy, Marcelo Ebrard, expressed during the 82nd Industrial Association Annual Assembly organized by CAINTRA in Monterrey on Wednesday that industrial subsidies provided by the Chinese government have impacted various production sectors in Mexico. He affirmed that Mexico has the right to shield its industries from what it perceives as unfair competition.
In December 2025, the Mexican Senate approved a proposal to reform the import and export tax law, targeting goods from countries without a free trade agreement with Mexico, including China, South Korea, India, Vietnam, and Thailand. Ebrard cited examples of the harm caused to Mexican businesses by low-priced Chinese exports, such as metal products sold in Mexico for $150 per ton, a price only achievable with national subsidies. Industries like textiles, footwear, and steel in Mexico are facing extremely unfair competition environments.
“After conducting various possible tests on local businesses in Monterrey, we concluded that the taxes paid by Chinese companies differ from local ones, or they receive substantial subsidies. In other words, there may be significant cost disparities,” Ebrard explained. He emphasized that the competitive environment is highly unfair and that tariffs can help restore balance.
Ebrard further stated, “We impose tariffs because some companies attempt to expand their market under government support. If your pricing is even lower than the competitor’s inventory price, any company could go bankrupt.”
For a long time, the US government has urged the Mexican government to prevent Chinese manufacturers from using Mexico as a springboard to export goods to the US market under preferential trade terms. Both the Biden and Trump administrations have maintained high tariffs on Chinese goods. Trump warned earlier this year that Mexico and Canada should not become exporting platforms for China or other Asian economies.