Four months after the US imposed 50% tariffs on most Indian goods, Mexico has approved tariffs of up to 50% on selected imports from several Asian countries, including India and China. The duties—introduced to protect domestic manufacturers—will come into force on January 1, 2026.
The new levies cover a broad range of products such as auto parts, small cars, clothing, plastics, steel, appliances, toys, textiles, footwear, furniture, leather goods, motorcycles, aluminium, paper, cardboard, trailers, soaps, perfumes and cosmetics, according to Mexican daily El Universal. The hikes apply to countries without trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
Why Mexico Is Raising Tariffs
Mexico says it wants to reduce reliance on Asian imports, particularly from China, with which it has a large trade imbalance. Beijing has criticised the move, calling it a unilateral act of protectionism and urging Mexico to reconsider.
China is expected to be the biggest loser, having exported $130 billion worth of goods to Mexico in 2024. The tariffs are also expected to generate $3.8 billion in additional revenue for Mexico.
President Claudia Sheinbaum’s administration says the move will support local industry and boost domestic production, with ruling party lawmakers framing the decision as key to job creation. Analysts quoted by El Financiero suggest the tariff package may also be aimed at aligning with US expectations ahead of the United States-Mexico-Canada Agreement review.
Impact on India
The tariff increase will hit nearly $1 billion worth of Indian exports, particularly automobiles. Import duty on cars will jump from 20% to 50%, affecting shipments from major exporters such as Volkswagen, Hyundai, Nissan and Maruti Suzuki.
Industry groups warn the move could severely impact India’s position in Mexico—its third-largest car export market after South Africa and Saudi Arabia—and have urged the Indian government to take up the issue with Mexican authorities.
Comments are closed.