Co-creating the "North American Fortress"? Mexico proposes coordinating tariffs with China, US Treasury Secretary suggests Canada follow suit.

Recently, US Treasury Secretary Besant expressed that Mexico has proposed implementing tariffs on China that match those of Washington, and urged Canada to take similar action to avoid potential export tariffs in the future. This measure could be key for North American countries to jointly resist the surge in Chinese imports. In an interview, Besant stated, "The Mexican government has put forward a very interesting proposal, which is to potentially align their tariffs on Chinese goods with those of the United States." He also added, "If Canada does the same, it would be a friendly gesture, and we could collectively build a 'North American fortress.'" Previously, media reports cited sources saying that Mexican officials are willing to increase tariffs on Chinese goods and find ways to purchase more American goods to avoid the tariffs threatened by US President Trump on Mexican products. The government of Mexican President Sheinbaum is planning to propose this in negotiations with the Trump administration. After Besant made the above remarks, the Mexican peso partially recovered some losses, with the exchange rate against the US dollar rebounding to 20.51 on Friday evening. It is currently unclear how the three North American countries will specifically implement a unified tariff policy, but this measure could have a significant impact on Mexico and Canada's trade with China. In early February this year, Trump imposed an additional 10% tariff on Chinese goods, and the Biden administration has already increased tariffs on electric cars, semiconductors, and other products. Sources revealed that Mexico may impose additional tariffs on Chinese automobiles and components, while considering tariffs on some finished products. However, the Mexican Ministry of Economy refused to comment on this. On the Canadian side, tariffs have already been imposed on Chinese electric cars, steel, and aluminum products this summer to align with US policy. In addition, Canada pledged in December last year to implement a second round of tariffs on key minerals, semiconductors, and CECEP Solar Energy panels from China, but it has not been formally implemented yet. These measures could be used as leverage in negotiations between Canada and the Trump administration. Trump has linked the tariff issue to fentanyl smuggling and illegal immigration issues, accusing Mexico of allowing Chinese companies to invest and manufacture cars using Chinese components. In recent years, Mexico has become an important importing country for Chinese brand cars like BYD Company Limited. Meanwhile, the Mexican government has been increasing control over low-cost Asian imports. Earlier this year, Mexico imposed a maximum 35% tariff on clothing imports from non-free trade agreement countries to signal cooperation with the United States. Sources revealed that negotiations between the US and Mexico on security and anti-drug cooperation have progressed faster than those on trade and tariffs. To show willingness to cooperate, the Mexican government extradited 29 drug traffickers and other criminal suspects to the US on Thursday, including Rafael Caro Quintero, a drug lord from the 1980s who was sentenced to decades in prison for the murder of a US drug enforcement officer. US Secretary of State Marco Rubio acknowledged and praised the Mexican government for deploying 10,000 National Guard soldiers to combat fentanyl smuggling. In addition, Mexican Finance Minister Rogelio Ramirez de la O met with Besant in Washington to discuss how to combat money laundering by drug traffickers and how to respond to the Trump administration's move to designate Mexican drug cartels as terrorist organizations. To avoid the Trump administration's imposition of a 25% tariff on their goods, the governments of Canada and Mexico are actively showcasing their efforts to curb the flow of fentanyl into the US. Canadian and Mexican officials plan to meet with senior US officials such as Commerce Secretary Rutenick and Trade Representative Grielx to seek tariff exemptions. Trump reiterated on Thursday that he would begin imposing tariffs on Canadian and Mexican goods next Tuesday (March 4), while increasing the additional tariffs on Chinese goods to 20%. Mexico has recently implemented several measures to strengthen trade control, such as Vidal Llerenas, Deputy Minister of Economy of Mexico, stating that the country may take other trade measures to restrict imports of low-priced goods from China. Additionally, the US earlier this month suspended the "minimum tariff" exemption for packages valued at less than $800.