Mexico a ‘Backdoor’ for Chinese Goods, Ontario Premier Says, Urging Canada-US Bilateral Deal

Chinese EV maker BYD launches its new truck, the BYD Shark, on the Mexican market in an event in Mexico City on May 14, 2024. Henry Romero/Reuters

Ontario Premier Doug Ford says the federal government should prioritize bilateral trade with the United States and abandon the three-country deal with Mexico if it refuses to impose tariffs on Chinese goods.

Ford alleged on Nov. 12 that cheap Chinese products are being rebranded as Mexican-made and resold to Canada and the United States, bypassing efforts by both countries to restrict Chinese imports.

“What I’m proposing to the federal government [is] we do a bilateral trade deal with the U.S., and if Mexico wants a bilateral trade deal with Canada, God bless them. But I’m not going to be drawn down with these cheap imports, taking men and women’s jobs from hardworking Ontarians,” he said during an unrelated press conference in Barrie, Ont.

Earlier on Nov. 12, Ford issued a statement, criticizing Mexico as a “backdoor” for Chinese imports, and urged the Mexican government to align with Canadian and U.S. tariffs on Chinese goods.

“Free trade needs to be fair. Since signing on to the United States-Mexico-Canada Agreement, Mexico has allowed itself to become a backdoor for Chinese cars, auto parts and other products into Canadian and American markets, putting Canadian and American workers’ livelihoods at risk while undermining our communities and doing enormous harm to our shared economic success,” Ford wrote on the social media platform X on Nov. 12.

“If Mexico won’t fight transshipment by, at the very least, matching Canadian and American tariffs on Chinese imports, they shouldn’t have a seat at the table or enjoy access to the largest economy in the world,” he wrote.

Canada recently increased tariffs on certain Chinese-made imports, aligning with the United States which has imposed similar tariffs on Chinese EVs, steel, and aluminum.

Canada’s 100 percent tariff for all Chinese-made electric vehicles (EVs) took effect on Oct. 1, including certain hybrid cars, trucks, and buses. A 25 percent surtax on Chinese steel and aluminum products also came into effect on Oct. 22.

The federal government said the measures aim to protect Canadian workers and industries from “unfair competition” from Chinese producers, who benefit from Beijing’s “intentional, state-directed policy of overcapacity and oversupply.”

Ford’s comments come as U.S. President-elect Donald Trump pledged in October to renegotiate the trilateral agreement during the election campaign. The Canada-U.S.-Mexico agreement (CUSMA), which replaced the North American Free Trade Agreement during Trump’s first term, is up for review in 2026.

During the Nov. 12 press conference, Ford highlighted Ontario’s close trade ties with multiple U.S. states.

“[Ontario is] the number one export destination to 17 states, and number two to 11 other states,” he said. “So do we have a stake in this? 1,000 percent, more than any other jurisdiction, and we’re going to continue to lead.”

Asked by reporters about Ford’s proposal, Prime Minister Justin Trudeau said many democracies around the world now have expressed “varying degrees of concern” about China’s unfair trade practices.

“We’re going to continue to work with partners like the United States, and hopefully Mexico as well, to make sure that we are united in our desire to protect good jobs that are more responsible around the environment than they are in China, more responsible around labour practices, and supporting families in meaningful ways,” he said during a press conference on Nov. 12.

“I know this is a concern that’s shared by the American government—the current and the incoming government alike—and we'll work together with them to ensure that we’re aligned in our approach,” Trudeau added in French.

Reuters contributed to this report.