Mexico has imposed high new tariffs on many Asian imports, marking a clear departure from its long-standing support for free trade. This change affects key exporting nations, including India.
In a major policy shift, Mexico’s Senate has approved a new tariff system that raises duties on over 1,400 products imported from countries without a formal trade agreement with Mexico.
Mexico announce 50% tariffs on India
Some tariffs could rise by as much as 50%, according to reports from Reuters. The targeted nations include China, India, South Korea, Thailand, and Indonesia.
The upper house passed the bill with 76 votes in favor, five against, and 35 abstentions. This occurred despite protests from domestic industry groups and strong objections from China. The lower house had already approved the measure.
Starting next year and continuing through 2026, the new rates will impact a wide range of industrial inputs and consumer goods, including automobiles and parts, textiles, clothing, plastics, metals, and footwear. While some items will face the maximum 50 percent duty, most products are expected to fall under the 35 % range.
Why it matters for India
India has aimed to increase exports of textiles, auto components, and engineering goods to Latin America. Now, it faces a much tougher entry into the Mexican market, the second-largest economy in the region and an important gateway to North America. Indian exporters have used Mexico as a stepping stone to the US, benefiting from its integration into North American supply chains.
These tariff increases threaten to undermine that advantage. Several manufacturers in Mexico, who rely on imports, have warned the government that the higher duties on goods from India and other Asian countries will raise production costs and contribute to inflation, according to agency reports. India’s Commerce Ministry has not yet made a statement.
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