MEXICO CITY, June 20 (Xinhua) -- Mexico should diversify its trade ties and further open up its economy to counter new U.S. tariffs and make its production chains more efficient, a think tank said Wednesday.

Manuel Molano of the Mexican Institute for Competitiveness (IMCO) told reporters at a press conference that for Mexico, "it is preferable to have an open economy so it can improve efficiency ... as has happened in many regions and in many sectors."

Mexico's best option is to become a "much more global" manufacturing center, he said.

Additionally, Mexico should seek ways to replace certain goods it imports from the United States by getting them from other countries, such as China, said Molano.

Molano also recommended Mexico refrain from over-retaliating against the new U.S. tariffs, saying it would simply be a new form of protectionism.

However, he urged Mexico to use its membership in the World Trade Organization (WTO) to argue against the tariffs.

"What we have to explain to all countries in the world is that we shouldn't get into a trade war, that the United States must go it alone until it realizes it is making a mistake," said Molano.

The United States recently announced it was imposing tariffs on billions of U.S. dollars of imports from Canada, China, Mexico and the European Union, in a bid to reduce its trade deficit.

"For a large economy like the United States to unleash a trade war could have benefits in the short term, but these benefits are not sustainable in the long term," said Molano.?