Mexico Has Proposed Matching US Tariffs on China

• U.S. Treasury Secretary Scott Bessent said on Friday that Mexico has proposed matching U.S. tariffs on China in a move that he described as "very interesting" and one that Canada should match.
• Top Mexican officials have met with members of Trump's cabinet this week for trade talks ahead of a March 4 deadline, when U.S. President Donald Trump's proposed tariffs on Mexican and Canadian imports are set to get into effect alongside an additional 10% duty on Chinese imports. The Mexican and Canadian governments did not immediately respond to requests for comment. The Chinese embassy in Washington said unilateral tariff hikes by the U.S. severely violate World Trade Organization rules and harm the interests of China, the U.S. and the world.
• Embassy spokesperson, Liu Pengyu highlighted that pressuring, coercion and threat are not the right way to deal with China. Instead, mutual respect is the basic prerequisite. Bloomberg, citing a person familiar, has reported that the proposed tariffs by Mexico on China would focus on cars and auto parts. The move is likely a response by Mexico City to avoid a looming 25% tariff by the United States on Mexican goods.
• Mexican President Claudia Sheinbaum's administration has said for months that it is carefully considering Washington and Ottawa's policies towards China, saying even before Trump's reelection that it sought to be "more aligned" in addressing potential unfair Chinese trade practices.
• Mexican Deputy Economy Minister Vidal Llerenas noted that Mexico could adopt further trade measures beyond tariffs it has slapped on cheap goods mostly from China, including counterfeit products, which had entered under previous low-cost exemptions known as "de minimis."

(Source: Reuters)