China urged Mexico to “think twiceBloomberg Terminal” before levying tariffs, a warning that could signal Beijing’s willingness to retaliate over a move it sees as giving into demands from the US.

“Any unilateral tariff increase by Mexico, even within the framework of WTO rules, would be seen as appeasement and compromise toward unilateral bullying,” a spokesperson for the Ministry of Commerce said in a statement on Thursday. “We urge the Mexican side to exercise extreme caution and consider carefully before taking any actions.”