China warns Mexico about higher car taxes

China's government told Mexico to be careful about making Asian cars more expensive.

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cnbc.com
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Fri, Sep 12, 25
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China's Ministry of Commerce warned Mexico about their plan to increase taxes on Asian cars. Mexico wants to change the tax from 20% to 50%. China asked Mexico to think carefully about this decision.

Mexico's Economy Secretary announced this plan, but the government must approve it first. After approval, the new tax will start in 30 days. China said they will protect their business interests.

This problem is part of bigger trade issues between China and America. Mexico has an agreement with America and Canada called USMCA. This agreement says car parts must be made in these three countries.

Chinese car companies are becoming more successful around the world. Mexico's new tax wants to help Mexican car companies compete better. Both countries will continue talking to solve this problem.

Original Article

cnbc.com

https://www.cnbc.com/2025/09/12/china-mexico-tariff-hike-countermeasures.html

Comprehension Quiz
Question 1 of 30 Correct
What is the current tax on Asian cars in Mexico?
10%
20%
30%
50%
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