Trump paused US tariffs on Mexico – what does it mean for Chinese companies there?
With a sword of tariffs from the United States still hanging over Mexico, new investment from China to the Latin American country has been largely put on hold, though many existing Chinese-funded factories there have stayed steady in the ever-changing environment – based on their past experiences dealing with tariff threats from US President Donald Trump.
A Chinese mechanical-parts manufacturer running a production base in Monterrey – a major industrial hub in northern Mexico – has front-loaded three months of inventory to its US warehouse, according to a manager who spoke on condition of anonymity.
“We will observe the reaction of the market and customers,” the manager said on Monday. “I personally feel that the tariff would not last long and would be resolved through negotiation and other means.”
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US pauses tariffs on Canada and Mexico
US pauses tariffs on Canada and Mexico
Due to high tariffs on made-in-China goods imposed by Trump during his first term and maintained by the administration of Joe Biden, Mexico has been a major re-routing channel for Chinese products entering the US in recent years, while attracting Chinese manufacturers – whose products range from furniture to car parts – to build factories and produce locally.
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