China’s Ministry of Commerce has warned Mexico of countermeasures as the country plans to hike tariffs on Asia-made cars to 50%. We “hope Mexico will be extremely cautious, and think twice before acting,” the ministry said in a statement late Thursday, translated by CNBC. “China and Mexico are mutually important trade partners,” the ministry said. “We are not willing to see both sides’ economic cooperation affected by this situation.” Mexico’s secretary of economy, Marcelo Ebrard, told reporters Wednesday that the country planned to raise tariffs on vehicles coming from Asia, particularly China, to 50% from the current 20%. The increased duties still need congressional approval, and the tariffs would take effect 30 days later, he said. “China will take necessary measures … to resolutely safeguard its legitimate rights and interests,” China’s statement read. Faced with “U.S. abuse of tariffs,” countries should safeguard free trade, China said. “The coercion of others should never sacrifice third-party interests.”

Full report : China warns Mexico to ‘think twice’ before raising tariffs, threatens countermeasures.