Mexico's Sheinbaum plans to cut Chinese imports in apparent nod to Trump

Mexican President Claudia Sheinbaum on Monday rolled out an economic plan aimed at curbing imports from China in an apparent nod to US President-elect Donald Trump and his allegations that Mexico is a back door for Chinese goods entering the United States. 

Sheinbaum also used her speech to defend the US-Mexico-Canada (USMCA) trade pact, which she said was the only way to compete with China. The deal is up for review in 2026. 

The moves come as trade tensions with the United States - Mexico's top trade partner - are heightened on tariff threats from Trump, who has accused Mexico of being a back door for Chinese goods to circumvent existing US tariffs. 

 

Mexico denies such accusations, but has since cracked down on contraband goods coming into the country from Asia and rolled out tariffs targeting e-commerce giants such as Shein and Temu. 

As part of a broad pro-growth agenda, Sheinbaum laid out a list of economic policies which she said would help increase investment and make Mexico one of the world's top 10 economies by 2030, up from 12th currently. 

"Our objective is to expand to the entire American Continent, which is the vision we want to have in order to be the region with the greatest potential and development in the world," Sheinbaum said. 

The plan includes boosting local sourcing for industries reliant on Chinese imports, like textiles and autos, as well as helping Mexican steel producers, who have long accused China of undercutting the market. 

Sheinbaum also plans to bump investments up to 28 per cent of GDP, adding 1.5 million manufacturing jobs by boosting local production and cutting red tape. 

The business-friendly agenda represents a shift in tone from Sheinbaum's predecessor and mentor, President Andres Manuel Lopez Obrador, who left office in October and often tussled with private firms. 

Mexico plans to boost its position using trade agreements, tariff policies and strengthening customs enforcement, a government presentation showed. 

"This is a collective job," Economy Minister Marcelo Ebrard said at the presentation, thanking private-sector representatives who helped build what he called a "navigational chart for the new era we are entering." 

Sheinbaum, a climate scientist who has made strong environmental pledges, will also work to make Mexico's energy grid run on 45 per cent sustainable energy, her presentation showed. 

However, that promise could be challenged by the heavily polluting and heavily indebted state oil company Pemex. Lopez Obrador poured billions of dollars to help prop up the company during his administration. 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)