Mexico has announced steep tariffs of up to 50% on a wide range of imports from Asian countries; including India and China; just months after the US imposed similar 50% duties on most Indian goods.
The new tariffs, aimed at protecting domestic industries, will take effect January 1, 2026.
The duties cover dozens of product categories such as auto parts, cars, plastics, textiles, footwear, appliances, steel, motorcycles, aluminium, toys, perfumes, and furniture, according to Mexican daily El Universal.
The move primarily targets countries that do not have a trade agreement with Mexico, such as India, China, South Korea, Thailand, and Indonesia.
Why Mexico Is Raising Tariffs
Mexico is attempting to reduce heavy dependence on Asian imports — especially from China, with which it has a major trade imbalance.
China reacted sharply, saying it “opposes unilateral tariff hikes” and urged Mexico to reverse the decision.
Mexico imported $130 billion worth of goods from China in 2024. The new tariffs are expected to generate an additional $3.8 billion in revenue and boost domestic production, a priority for President Claudia Sheinbaum’s administration.
Mexican lawmakers say the goal is to protect local manufacturers and create jobs. However, economic analysts believe the move may also be intended to strengthen Mexico’s position ahead of the US–Mexico–Canada Agreement (USMCA) review.
Impact on India
The tariff hike poses a serious challenge for Indian exporters; especially the automobile sector. According to Reuters, Mexico’s decision could affect $1 billion worth of Indian car shipments from companies like Volkswagen, Hyundai, Nissan, and Maruti Suzuki.
Import duties on cars will now jump from 20% to 50%, significantly hurting India’s third-largest automobile export market after South Africa and Saudi Arabia.
India’s auto industry has urged the Indian government to engage with Mexico diplomatically, warning of a direct impact on export volumes and market competitiveness.