President Claudia Sheinbaum of Mexico unveiled an economic strategy on Monday that aims to reduce imports from China, seemingly in response to US President-elect Donald Trump's claims that Mexico serves as a back door for Chinese goods to enter the US. 

During her address, Sheinbaum also defended the US-Mexico-Canada (USMCA) trade agreement, arguing that it was the only viable option for competing with China. The agreement will be reviewed in 2026. The actions follow Trump's tariff threats, accusing Mexico of serving as a back door for Chinese goods to evade current US tariffs, which have escalated trade tensions with the US, Mexico's main trading partner. 

Mexico has denied these accusations but has taken steps to control the inflow of contraband goods from Asia. The country has also introduced tariffs aimed at e-commerce companies like Shein and Temu. As part of her pro-growth plan, Sheinbaum outlined several economic policies designed to boost investment and help Mexico move from the 12th to the top 10 economies in the world by 2030. "Our objective is to expand to the entire American Continent, which is the vision we want to have in order to be the region with the greatest potential and development in the world," Sheinbaum said. For industries like textiles and automobiles that depend on Chinese imports, the plan calls for increasing local sourcing. It also aims to support Mexican steel manufacturers, who have long accused China of undercutting prices. 

Sheinbaum aims to increase investments to 28% of GDP and create 1.5 million manufacturing jobs by enhancing local production and simplifying regulations. This business-friendly approach marks a change in tone from her predecessor and mentor, President Andres Manuel Lopez Obrador, who left office in October and often clashed with private companies. According to a government presentation, Mexico intends to improve its standing through trade agreements, tariff regulations, and stepping up customs enforcement. "This is a collective job," Economy Minister Marcelo Ebrard said during the presentation, expressing gratitude to leaders of the business sector for their contributions to the creation of what he described as a "navigational chart for the new era we are entering." 

Sheinbaum, a climate scientist who has made strong environmental commitments, will also try to ensure that 45 per cent of Mexico's electricity grid is powered by renewable energy, according to her presentation. That promise might face challenges due to the highly polluting and heavily indebted state oil company, Pemex. During his time in office, Lopez Obrador invested billions of dollars to support the company.