China criticises Mexico tariff hike, says it will undermine investor confidence

China's commerce ministry has criticised Mexico's decision to raise tariffs on automobiles from China and other Asian countries to 50%, saying the move would undermine investor confidence and "seriously affect Mexico's business environment".

The statement follows Mexico's announcement on Wednesday that it would raise tariffs on automobiles to their maximum level allowed.

Mexico said the hike was part of a broader overhaul of import levies that are aimed at protecting jobs. Analysts say the move was also aimed at placating the United States.

Mexico's economy ministry said the measures, which will increase tariffs to varying degrees on goods across multiple sectors including textiles, steel and automotive, would impact $52 billion of imports.

"China and Mexico are important economic and trade partners of each other, and we do not want to see economic and trade cooperation between the two sides affected as a result," China's commerce ministry said.

China will take "necessary measures" to safeguard its "legitimate rights and interests" without giving details of what they were, the ministry said.

The move comes amid mounting U.S. pressure on Latin American countries to curb economic ties with China, as Washington vies for influence in the region. 

Reuters