China probes US, Mexican pecan imports, Mexico’s restriction measures

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BEIJING (Reuters) -China’s commerce ministry initiated an anti-dumping investigation into pecans imported from the United States and Mexico on Thursday, signalling more global trade tensions and increased friction with the two nations.

Beijing’s move came as Mexico proposed to raise tariffs on goods across multiple sectors, including textiles, steel and automotive, from China and other countries, and as China and the U.S. eye further talks in a bid to ease their trade dispute.

The investigation is expected to conclude by September 25, 2026, with a possible six-month extension under special circumstances, China’s commerce ministry said in a statement.

It said preliminary evidence showed Mexican and U.S. pecans were exported and sold to China at prices lower than their normal value and causing material injury to its domestic industry.

CHINA INVESTIGATES MEXICO’S TARIFFS

Separately, China launched an investigation on Thursday into Mexico’s tariffs and other trade restrictive measures against China, saying they will damage the interests of its trade partners and reduce confidence in investing there.

“China believes against the backdrop of the U.S. abusing tariffs, all countries should jointly oppose all forms of unilateralism and protectionism, and must never sacrifice the interests of third parties due to coercion from others,” a Chinese commerce ministry spokesperson said in a statement.

In a statement on Thursday evening, Mexico’s economy ministry said it was aware of the probe and that all its trade decisions complied with the maximum tariff limits set by the World Trade Organization, adding that the measures were motivated by the need to protect Mexican industry and workers.

“Mexico’s recent decisions stem from a legitimate national interest, not external pressures, nor from any geopolitical considerations,” the ministry said, adding that it had invited Chinese officials to send a delegation to Mexico to discuss the tariffs.

Analysts say such measures from Beijing are expected after Mexico’s planned tariffs, and the Chinese commerce ministry indicated it viewed the move as Mexico giving in to U.S. coercion.

“As usual, agricultural products are proving an easy target,” said Even Rogers Pay, an analyst at Beijing-based Trivium China who specialises in agriculture.

“By lumping U.S. and Mexican pecans together in the same investigation, the ministry of commerce creates the prospect for Mexico’s government to compromise and gain a big advantage for pecans in China’s market relative to U.S. growers,” she said.

Trade relations between China and the U.S. are growing more unpredictable, as Beijing earlier on Thursday added six U.S. firms to its export control and unreliable entity lists, at a time when the world’s two largest economies seek to negotiate a durable trade deal.

(Reporting by Yukun Zhang, Shi Bu and Ryan Woo; Additional reporting by Ana Isabel Martinez and Brendan O’Boyle in Mexico City; Editing by Bernadette Baum, Ed Osmond and Michael Perry)