The Leopard 8 is one of the three cars that the Fang Cheng Bao brand unveiled by BYD on April 16, 2024 in Shenzhen.
CNBC | Cheng Ells
Beijing-China's Ministry of Commerce has warned Mexico about countermeasures because the country plans to increase the tariffs from Asia to 50%.
We “hope that Mexico will be extremely careful and think twice before acting,” said the ministry late Thursday, translated by CNBC.
“China and Mexico are important trading partners for both sides,” said the ministry. “We are not ready to see the economic cooperation between the two sides of this situation.”
The Mexican Economic Secretary Marcelo Ebrard informed the reporters on Wednesday that the country was planning to increase the tariffs for vehicles from Asia, especially from China, from currently 20% to 50%. The reinforced duties still have to need the consent of the congress, and the tariffs would come into force 30 days later, he said.
“China will take the necessary measures … to determine his legitimate rights and interests,” was China's explanation.
In view of the “US abuse of tariffs”, the countries should protect free trade, said China. “The compulsion of others should never sacrifice interests of third -party providers.”
According to a report by Wall Street Journal, the planned China -Zölle in Mexico are a broader federal budget proposal that would affect the country's imports worth 52 billion US dollars.
In the ongoing trade voltages with the United States, China's countermeasures for the exports of minerals were contained for the production of cars and other advanced technologies. Chinese companies dominate the supply chain for many of these minerals.
Mexico is located on the southern border of the USA and benefits from the USMCA agreement of the USA-Mexico-Canada (USMCA) for the revenue-free trade between the countries. However, the USMCA, which came into force in 2020, requires a much larger part of a vehicle in the region than the North American free trade agreement replaced by it.
The Mexican auto industry is the largest employer in the country, Jorge Guajardo, Washington, Dc-in Dentons Global Advisors, previously to CNBC. He is a former Mexico ambassador in China.
“At 50 percent, tariffs are lower than the 60 percent tariffs that Russia applies to Chinese cars,” Guajardo told CNBC on Friday in an e -mail. “I have not yet seen China referred to the same allegations [of coercion] In Russia or Brazil, I assume that it is a tacit agreement that you understand that there is no appetite in the world to absorb China's overcapacity. “Brazil announced tariffs of 35% for electric cars in July.
An excess offer was one reason why global trade existed, a Chinese official told CNBC last year and added that when China produced too many electric cars, other countries that were dominated by fluid natural gas, agricultural products and high -quality semiconductors.
From June 2022 to July 2024, more than 20 Chinese car parts and manufacturers in Mexico have known over 7 billion US dollars in Mexico from June 2022 to July 2024.
It is unclear how many projects have been completed. Chinese electric car giant Byd In particular, has not yet built a long -awaited factory in Mexico.
According to the information from the Chinese car automotive association, the Central American country was the top destination for automobil exports at the beginning of this year.
“What is very important about Chinese cars is that where they take on market shares, they often do not really come from the western brands. It really comes from the other Asian brands. I think we saw that in Mexico,” said Eugene Hsiao, Macquarie Capital, Head of China Strategy, said about the China connection in the China connection.
But even with an increase in tasks by 25% at this time, Hsiao said that “he remains intact for many of these Chinese cars for many of these Chinese cars.”