China’s surplus has also been driven by a host of small-ticket items including a surge in low-value packages — the business model employed by online retailers such as Shein and Temu, which have come under fire in the US and EU for taking advantage of duty-free loopholes.

Dozens of countries that do not have a free trade agreement with Mexico will be affected, including Thailand, India and Indonesia. The move comes as Mexico is in negotiations with the US over steep import taxes that President Donald Trump has threatened to impose on the country.

Chip-import dependence is a national-security threat. A “chip-for-chip” tariff could be a $230 billion revenue windfall and spur U.S. semiconductor production.