Yielding to external coercion will only make Mexico more passive: Global Times editorial

By Global Times Published: Sep 13, 2025

https://www.globaltimes.cn/page/202509/1343385.shtml

The Mexican government has recently submitted a legislative proposal to Congress, seeking to impose tariffs of up to 50 percent on a wide range of imports from countries that do not have a free trade agreement with Mexico. Statistics show that the measure covers 19 sectors and 1,463 tariff fractions, accounting for about 8.6 percent of Mexico's total imports. If enacted, this tariff adjustment would raise Mexico's average tariff rate to 33.8 percent - more than double the current level. The move has drawn considerable international attention.

It is clear to any keen observer that the real driver behind Mexico's latest tariff adjustment is the heavy political pressure and geopolitical coercion coming from Washington. Many international media outlets have noted that the proposal was announced at a time when the US is exerting enormous pressure on Mexico. By leveraging the upcoming review of the US-Mexico-Canada Agreement (USMCA) next year, Washington has thrust Mexico into the eye of the storm, attempting to force the Mexican government to sacrifice its own interests in order to serve US geopolitical strategies.

For an economy heavily dependent on foreign investment and exports, protectionism is not a shield, but the beginning of a domino effect. Mexico's growth has long relied on the global division of labor in supply chains, especially foreign investment in manufacturing and access to export markets. Yet today, the Mexican government's repeated resort to tariffs in response to external pressure sends a signal of regulatory volatility and policy uncertainty. This undermines Mexico's reputation as a "reliable production base" and weakens investor expectations in the long-term allocation of capital, technology, and high-end capacity. Should investment shift toward more open and stable Latin American neighbors, Mexico would not only see its industrial foundation eroded, but also risk falling into passivity and marginalization in regional competition.

Ultimately, it is ordinary Mexicans who will pay the price of high tariffs. When essential consumer goods such as automobiles, home appliances, clothing, and footwear are hit with hefty duties, the costs will inevitably pass on to buyers, fueling broad-based price increases and inflation. Mexico's own business community has already warned that raising tariffs will "generate inflationary pressures in Mexico." 

Tariff-raising policies may offer temporary relief to certain industries in the short term, but their long-term effect is to increase manufacturing costs, weaken the competitiveness of small and medium-sized enterprises, and impact overall social welfare. 

Moreover, foreign investment and production cooperation in Mexico have long helped create jobs locally and promote industrial upgrading. If Mexico chooses to set up trade barriers, it will only cut off this valuable momentum for development. This tariff-raising move by Mexico, if implemented, will be a typical case of sacrificing the economy for political purposes, which is regrettable.

At present, the US government continues to instrumentalize economic and trade issues, brandishing the "tariff stick" without justification, intimidating and threatening other countries, and seriously distorting global trade development. 

As a member of the World Trade Organization, Mexico is supposed to abide by the principles of free trade and non-discrimination. 

Now, however, by drastically raising tariffs specifically against countries without free trade agreements, Mexico is in effect abandoning the commitment to an "open economy" before the international community and is compelled to cater to the backward tide of protectionism.

Pursuing a beggar-thy-neighbor policy will not yield "bargaining chips"; instead, it will only cement Mexico's own passive position. 

"Appeasing the US" brings no benefit to Mexico itself. It makes Mexico appear "susceptible to coercion," raises doubts about the independence of its policymaking, and encourages the pressuring side to demand even greater concessions. At the same time, it risks provoking doubts from harmed businesses and consumers and shrinking the country's own development space. It may also risks losing support from the international community, eroding Mexico's ability to "counter unilateralism with rules," and damaging the ecosystem of multilateral cooperation.

"China hopes Mexico will exercise caution and think twice." This deserves serious reflection from the Mexican side. 

When formulating major policies that concern the national economy and people's livelihoods, a country must remain clear-headed and rational, making decisions independently. Industrial upgrading relies on technological innovation, institutional frameworks, and market dynamism, not on artificially blocking competition. In response to related questions, Mexican President Claudia Sheinbaum stated that "we don't want a conflict" with the countries on which Mexico plans to increase tariffs.

It is hoped that Mexico will return to the correct path of openness and cooperation, uphold multilateralism and the principles of free trade, and make policy decisions based on its long-term national interests rather than acting as a vanguard for any other country. Only in this way can Mexico earn global respect and promote economic prosperity and sustainable development.