China Inc. rethinks investment in Mexico under Trump's tariff threats

Uncertainty and higher costs prompt businesses to strategize for risk

Trump's tariff threat could discourage Chinese manufacturers considering investment in Mexico. © Reuters

PAK YIU

February 17, 2025 02:30 JST

NEW YORK -- Chinese companies are reconsidering industrial investments in Mexico amid U.S. policy that is disrupting regional trade, potentially slowing the surge of Chinese deals in the North American country.

U.S. President Donald Trump announced 25% tariffs on Mexico this month only to pause the duties at the eleventh hour after Mexican President Claudia Sheinbaum promised to strengthen border security and crack down on illegal narcotics.