Mexico finds Chinese rubber dumping, moves to impose permanent duty
Mexico has slapped a permanent duty on Chinese imports of specialised synthetic rubber, saying a surge of low-priced shipments of the material used in a wide array of products weakened its only producer at a time when the government is stepping up trade defences to protect local industries and manage rising friction with Beijing.
The Economy Ministry said that imports of styrene butadiene styrene, known as SBS, will face a specific charge of US$0.8324 per kilogram.
SBS is a thermoplastic rubber made by linking blocks of the chemicals styrene and butadiene. It performs like elastic rubber but can be melted and reshaped like plastic, which makes it useful in shoe soles, adhesives, roofing materials and road asphalt that must withstand heat and pressure.
The ruling comes against the backdrop of escalating trade friction between the two countries. In September, Beijing condemned a separate Mexican proposal to raise import tariffs on automobiles and other goods from countries without trade agreements, a plan that would directly affect Chinese exporters.
At the time, spokesperson for China’s Foreign Ministry Lin Jian said China opposed measures “taken under coercion to constrain China or undermine China’s legitimate rights and interests” and warned that it would protect its position as the situation develops.
Sinopec is China’s largest SBS producer and a central supplier to its home market. Photo: handout
Mexico has argued that the tariff plan, which President Claudia Sheinbaum’s government submitted to Congress, is needed to protect jobs in sectors such as automobiles, steel and textiles. The proposal allows increases of up to 50 per cent on selected goods and reflects a broader effort to shield local manufacturers as global competition intensifies.
Dynasol Elastomeros, the only known Mexican manufacturer of SBS, triggered the case in April 2024 when it filed a complaint saying a rapid surge of low-priced Chinese imports had weakened its sales and financial performance.
The company said it had been forced to cut its own prices to keep pace with the inflow, a pattern the ministry later confirmed through its review of trade records.
As officials examined pricing and production conditions in China, they drew heavily on domestic data from Sinopec, the country’s largest SBS producer and a central supplier to its home market.
The resolution notes that Sinopec, Asia’s largest refiner, is adding new capacity through what industry reports describe as China’s biggest SBS plant, which the ministry said highlights the scale of Chinese output and the pressure to move surplus material overseas.
Price comparisons showed how steep that pressure had become. Chinese SBS undercut the Mexican product by between 38 and 54 per cent across the periods reviewed and was also priced 37 to 52 per cent below imports from other countries.
The final ruling states that the Chinese SBS was also being sold for up to 45.1 per cent less than the domestic product, a gap the ministry said was central to its determination that dumping had occurred.
China holds more than half of global SBS production capacity, creating persistent pressure to export excess supply when domestic demand slows. The Economy Ministry said this structural imbalance made further growth in Chinese shipments to Mexico likely without preventive measures.
The US was also a shift factor in global trade flows. In 2018, under President Donald Trump’s first term, Washington imposed tariffs on certain Chinese rubber and chemical products. Mexican authorities concluded that this barrier diverted some Chinese exports away from the American market and towards Mexico, which had become an attractive destination because of its manufacturing growth and easier access for foreign suppliers.
The now permanent duties will apply to Chinese SBS regardless of the country through which it is shipped. Officials said this approach is meant to prevent companies from routing Chinese material through third countries to avoid the charge.
The measure will remain in place for five years unless a review determines that dumping and injury are unlikely to recur.
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