Mexico’s President, Claudia Sheinbaum, has unveiled a bold economic plan aimed at reducing imports from China, a move widely seen as a response to US President-elect Donald Trump's accusations that the country serves as a backdoor for Chinese goods entering the US market. This initiative forms part of a broader strategy to reduce Mexico’s growing trade deficit with the Asian superpower, which reached a staggering $105bn in 2023.

The plan includes measures to boost production in sectors such as textiles and automobiles, industries heavily reliant on Chinese imports. Sheinbaum has made clear that local sourcing will be prioritised, with plans to replace 15% of sewing thread imports with domestic supplies. Additionally, she has promised to offer incentives to Mexican manufacturers of products like polymers and automotive cables to support industries crucial to the domestic economy.

In line with these shifts, the government recently slapped new tariffs on Chinese imports, especially textiles. These will range between 15% and 30%, directly targeting products like clothing, shoes, and toys. This move aligns with the protectionist stance championed by Trump, who has repeatedly claimed that China is using Mexico as a gateway to dodge US tariffs.

The timing of these measures is strategic, as Mexico seeks to prevent the imposition of a 25% tariff on Mexican imports into the US, which Trump has threatened if it fails to curb irregular migration and reduce Chinese influence. By aligning Mexico's policies more closely with Trump's trade war against China, the administration appears to be seeking both to strengthen relations with Washington and benefit from trade agreements like the USMCA.

Sheinbaum’s strategy marks a significant departure from the approach of her predecessor, Andres Manuel Lopez Obrador, who often clashed with the private sector. Now, the president aims to raise Mexico’s investment to 28% of GDP and generate 1.5mn new manufacturing jobs. The goal is clear: Mexico wants to position itself among the top 10 global economies by 2030, primarily by leveraging the USMCA and reducing dependency on Chinese imports.

This policy shift comes amidst increasing pressure from the US, which has long been critical of Mexico’s trade relations with China. Trump has consistently argued that Beijing is undermining the US’s global economic position, and he has sought to draw its closest neighbours, Canada and Mexico, into his ongoing trade conflict with China. The push to slash Chinese imports is thus seen not just as an economic necessity for Mexico, but also as a political gesture to ingratiate Trump, whose influence over trade policy remains strong.

The geopolitical context: Trade war and economic diplomacy

Sheinbaum’s actions reflect broader geopolitical trends, particularly in North America’s collective stance towards China. Canada, for instance, has also imposed tariffs on Chinese goods, targeting sectors like electric vehicles, steel, and aluminium. Yet the tension remains palpable, with Trump continuing to nag both countries to take a firmer stance against Beijing's growing clout.

In this light, Sheinbaum's latest plan could be seen as an attempt to balance Mexico's economic needs with the pressures from the White House. By strengthening ties with the US through trade policies that align with Trump’s priorities, Mexico hopes to avoid further tariff threats while also addressing its own economic challenges. The decision to impose tariffs and cut reliance on Chinese imports signals Mexico’s willingness to side with Washington in its economic war against Beijing but also highlights the complex dynamics of global trade in the current geopolitical climate.

As the crucial 2026 USMCA review approaches, these moves could have a lasting impact on Mexico’s future trade relations, both within North America and globally.