China has warned Mexico it may impose retaliatory measures following a tariff investigation, potentially complicating trade agreements with the US.

China warned Mexico on Thursday it could impose retaliatory measures after concluding a formal investigation into tariffs Mexico imposed on more than 1,400 categories of Asian goods, in a dispute that threatens to complicate Mexico City’s parallel negotiations to renew its trade agreement with the United States. China’s Ministry of Commerce (MOFCOM) said the tariffs, which range from 5 to 50 per cent on 1,463 product categories in force since January 1, restrict the entry of Chinese goods,...