A ripple effect of rising trade protectionism appears to be spreading, with Mexico’s decision to hike tariffs on Chinese cars to 50% echoing a broader global shift. This move comes just as the United States is proposing an even more dramatic tariff action against both China and India, suggesting a worldwide trend away from free trade.
While Mexico’s action is aimed at protecting its domestic auto industry, it contributes to a global atmosphere of economic nationalism that could make President Trump’s more ambitious plans seem more plausible. Trump has asked the EU to join him in a 100% tariff on India and China to pressure them over their support for Russia in the Ukraine war.
The convergence of these events—in Washington, Brussels, and Mexico City—points to a significant moment of flux in the international trade system. The post-Cold War consensus on globalization is being challenged by nations increasingly willing to use tariffs as tools for domestic and foreign policy.
The ultimate direction of this trend may be decided in the United States. A pending Supreme Court case on the legality of Trump’s tariffs will be a pivotal moment. A ruling in his favor could unleash a new wave of protectionism, while a defeat could serve as a powerful brake on the growing global movement toward higher trade walls.