China says Mexico’s tariff hikes constitute ‘trade barriers’ after probe

China has accused Mexico of imposing trade and investment barriers through tariff hikes on its goods, a sign the friction between the two trading partners – fuelled by escalating pressure from Washington under US President Donald Trump – is continuing to build.The Ministry of Commerce announced on Wednesday that the Mexican government’s measures to raise tariffs on imports from countries not party to its free trade agreements constitute a breach of trade rules. The move primarily affects Chinese products.Following the announcement, which serves as a conclusion to an investigation first launched in September, Beijing is now positioned to pursue further bilateral talks or escalate the case to a multilateral dispute resolution body, such as the World Trade Organization.Mexico’s revised tariff rates on over 1,400 products entered into force on January 1. The additional duties ranged from 5 to 50 per cent, with product categories such as steel and vehicles bearing the heaviest burden, according to China’s commerce ministry.The ministry added that the hikes affected more than US$30 billion of Chinese exports to Mexico, based on last year’s trade data.In addition to tariffs, the ministry noted that supplementary measures – including protracted customs clearances and stricter application of rules of origin – could also constitute “direct or indirect discrimination or restrictions” on Chinese imports.