🇨🇳 China vs Mexico 🇲🇽

An unusual clash between two friendly countries. And uncontacted indigenous communities face multiple threats in Peru.

Ignacio Portes & Lucas Berti

TRADE

Mexican tariffs spark trade tension with China

A package of reforms proposed by Mexican President Claudia Sheinbaum has triggered a rare diplomatic dispute with China, a country with which Mexico has traditionally maintained friendly ties.

The most salient point was a sweeping rise in import tariffs reaching up to 50%, which would include more than 1,000 product categories such as cars, clothing, plastics, steel, aluminum, toys, furniture and home appliances.

Crucially, the new tariffs would only apply to countries without a trade agreement with Mexico, sparing the United States but ensnaring China, its second-largest trading partner. Other nations set to be hit by the reforms include Russia, South Korea, Thailand, India, Indonesia and the Philippines.

The fact that Mexico’s ruling Morena party controls two-thirds of Congress meant that the bill’s passage was all but guaranteed, triggering a swift reaction from China, which suggested that the reform was a response to US pressure.

“In the current context of the United States’ abuse of tariff hikes, all countries should jointly oppose all forms of unilateralism and protectionism, and must not sacrifice the interests of third parties under the coercion of others,” a spokesperson for China’s Commerce Ministry said.

China also announced that it would be opening an investigation into whether Mexico is using these tariffs as a trade barrier, a decision that Mexico played down, saying all of its proposals fall within the tariff limits imposed by the World Trade Organization. 

On average, Mexico’s tariffs on these countries could rise from 16% to 34%, estimates suggest, resulting in an additional 40 billion Mexican pesos (roughly USD 2.2 billion) in tax revenue over the next year. The tariffs would remain in effect until the end of 2026, with potential revisions to follow afterwards.

👉 Why it matters. While the Mexican government denies it, analysts believe that China is correct in stating that the tariff hike is closely linked to US pressures. Last year, Democratic and Republican politicians accused Mexico of acting as a back door for Chinese imports. Higher tariffs south of the border would eliminate incentives to use Mexico as a duty-free middleman. 

Reports indicate that the US is also pushing for stricter traceability measures for Chinese products, which could hinder Asian goods that attempt to pass as made in Mexico, as the country is exempt from multiple regulations due to its trade deal with the US and Canada.

Last week, Sheinbaum said she was willing to set up high-level negotiations with China to discuss their differences. “We have very good relations with China, but we want to strengthen our own economy. We are open to an agreement that benefits Mexico without reducing our imports,” the president argued.

Mexico has a relatively strong hand in negotiations with the Asian giant, as it imports much more than it exports to China, meaning that Beijing would not gain much from retaliation. Last year, Mexico imported USD 129 billion worth of Chinese products, while only exporting USD 8.8 billion, according to Mexican government data.

Some local industries also stand to benefit from the tariffs, as manufacturing sectors across Latin America are generally fearful of Chinese products, with which they struggle to compete.

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INDIGENOUS RIGHTS

Uncontacted communities at risk from Peru’s encroachment

A series of recent moves by Peruvian authorities has alarmed indigenous groups, who warn that uncontacted communities face mounting threats to their survival.

In a new report, NGO Survival International highlighted proposals from national and local officials that it says endanger indigenous communities — starting with the government’s decision to block the creation of the Yavari-Mirim reserve in the Amazonian region of Loreto, where plans for a protected area had been advancing for more than two decades.

Another bill in Congress would increase the frequency of reviews for reservations where uncontacted groups live, creating a constant risk that authorities could revoke their legal protection.

At the same time, proposals to expand oil and gas drilling in protected areas — a familiar battle across South America’s nine Amazon nations — threaten 18 territories that overlap with land used by uncontacted indigenous peoples, which the NGO called a potentially “fatal blow” to their societies.

“What’s happening in Peru now is an unprecedented attack on the very existence of uncontacted peoples,” said Survival International director Caroline Pearce. “These measures, if passed, will condemn them to destruction, slowly but inevitably. Their territories, so vital to their survival, will be opened up, mined, drilled and destroyed.”

Peruvian indigenous organizations have filed complaints at home and are lobbying abroad, warning that the measures would endanger not only their rights but also the environment. A coalition of the country’s largest indigenous groups has urged international donors to suspend financing for Peru’s forestry industry until protections for uncontacted communities are enforced. 

They detailed their concerns in a letter to the World Bank, the US and the European Union. Signatories include AIDESEP, the Interethnic Association for the Development of the Peruvian Rainforest, which has long campaigned on behalf of indigenous peoples in isolation (known in Spanish as PIACI). 

👉 Why it matters. The organization estimates that 25 uncontacted groups still live in Peru and says they remain “extremely vulnerable” to economic pressures in the Amazon despite official regulations guaranteeing their rights.

The threats extend beyond uncontacted communities. In Loreto, the Shawi people are resisting the construction of a highway that they say would accelerate land invasions and serve mainly the mining sector, which is seeking new permits to operate in the biodiverse region.

Halting these “nefarious bills,” said AIDESEP leader Julio Cusurichi, would mark a decisive step in defending indigenous rights in Peru and protecting “the lives of thousands of our most vulnerable compatriots.”

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QUESTION OF THE WEEK

Which of the following statements about Peru’s indigenous peoples is FALSE?

• Peru recognizes 55 indigenous groups that speak 47 different languages.
• Most of Peru’s indigenous peoples live in the Andes, not the Amazon.
• After Spanish, Quechua is the most widely spoken language, with about 3.8 million speakers
• Much of modern-day Peru once made up the heart of the Inca Empire.

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QUICK CATCH-UP

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🔥 Indigenous protesters freed 17 Ecuadorian soldiers held in captivity for three days. The incident occurred amid escalating tensions following government cuts to fuel subsidies and a proposed constitutional reform. A convoy led by President Daniel Noboa was also reportedly attacked by Molotov cocktails, while one protester died after a clash with the armed forces.

👍 Completing one year in office this October, Mexican President Claudia Sheinbaum still holds approval ratings similar to her massively popular predecessor, Andrés Manuel “AMLO” López Obrador. Polling averages put Sheinbaum at 73%, while AMLO finished his term at 71%. While crime and corruption remain problems, social programs and a pragmatic approach to relations with the US helped consolidate a positive view of her administration. 

🏟️ After performing more than 30 shows in Puerto Rico — while avoiding the US mainland amid concerns that immigrant fans could be targeted by ICE agents — rap superstar Bad Bunny has been named the headliner for the 2026 Super Bowl halftime show. The announcement quickly drew anger from Donald Trump’s advisers, who vowed to mobilize immigration authorities at the event in a crackdown on potentially undocumented fans.