Asianfin -- The Mexican government voiced concerns Monday over the Biden administration’s proposal to restrict Chinese software and hardware in connected vehicles on U.S. roads, citing potential disruptions to North America’s integrated automotive industry.

In a filing with the U.S. Commerce Department, Mexico’s economy ministry warned that the proposal could have a "substantial impact on Mexico's automotive sector," raising potential trade barriers, supply chain disruptions, higher production costs, and risks to both direct and indirect employment.

Automakers and tech organizations separately appealed for adjustments to the rule and additional time for compliance, as the proposal escalates U.S. limits on Chinese vehicles, software, and components. If implemented, it would effectively ban the import of Chinese brand vehicles, even those assembled in Mexico.

In September, the Biden administration solidified a series of tariff increases on Chinese imports, including a 100% duty on electric vehicles and additional tariffs on EV batteries and critical minerals, intensifying trade restrictions on China.