Mexico is planning to establish a “task force” to involve US companies in the process of reducing imports from China, the country’s economy minister told a group of auto suppliers at a private meeting Friday in Detroit.

China has strengthened trade with Latin America at the expense of the U.S. But Donald Trump, who threatens to raise tariffs on Mexico, could upend those ties.

The migration of manufacturing to Mexico could undermine Trump’s promise to voters that ratcheting up tariffs on China would incentivize companies to bring production back to the U.S and give American companies a more even playing field.

Mexico’s government on Monday launched a plan to shrink its yawning trade deficit with China and attract investment, in an olive branch to Donald Trump’s incoming US administration.

Mexico, currently the No. 12 economy according to World Bank data, aims to crack the Top 10 by 2030, Sheinbaum said. The nation will do so by boosting local manufacturing and swapping out imports, creating manufacturing jobs and cutting through red tape to attract investments in the country, Sheinbaum said.

Chinese companies looked to Mexico more than most. Their investment in the country has surged. Mr Trump (who has already threatened to apply a tariff of 25% to Mexican imports “on day one” unless it stops migrants and drugs from illegally crossing the border) believes those firms are using Mexico as a tariff-free gateway to the United States.

Panama is part of a bigger piece of real estate that Mr Trump has his eye on. He wants to influence territory and infrastructure close to the United States. He views Mexico as a source of unwanted migration,

Mexican President Claudia Sheinbaum said on Wednesday that she expects state oil firm Pemex's (PEMX.UL) debt to suppliers to be paid off in March.

US wins multibillion-dollar cross-border corn dispute with Mexico; China-based carrier launches new ship for Mexico trade route; Volkswagen moves Golf vehicle manufacturing to Mexico; and Parts Town opens Phoenix area distribution center.

Fear drove them out of China -- over oceans and continents, through rainforests and mountains, seeking safety and opportunity in the United States. Now, as Donald Trump's second presidency looms, Chinese asylum seekers are once again afraid.

He’s threatening to do it again. Round One inadvertently pushed China and Mexico closer together on trade and foreign investment, as China sought new trade partners and a detour for its exports ...

Shoppers walk with their purchases near the U.S.-Mexico border in San Ysidro, Calif., on Nov. 26, 2024. President-elect Donald Trump has threatened China, Canada and Mexico with punitive tariffs ...