China warns Mexico to 'think twice' before raising tariffs, threatens countermeasures

Group 1 - China's Ministry of Commerce has warned Mexico about potential countermeasures in response to Mexico's plan to increase tariffs on Asian-made cars to 50% from the current 20% [1][2] - Mexico's Secretary of Economy, Marcelo Ebrard, stated that the increased tariffs would require Congressional approval and would take effect 30 days after approval [2] - The trade relationship between China and Mexico is highlighted as mutually important, with concerns that economic cooperation could be negatively impacted by the tariff increase [2] Group 2 - China has indicated it will take necessary measures to protect its legitimate rights and interests amid ongoing trade tensions, which have included export restrictions on critical minerals used in car production [3] - The United States-Mexico-Canada Agreement (USMCA) facilitates tariff-free trade but requires a higher percentage of vehicle components to be sourced from the region compared to the previous North American Free Trade Agreement [4]