New Delhi : After the US’s sky-high 50% tariffs on Indian imports, another country has opened a new front against New Delhi amid the raging global trade war. Mexico’s Senate approved tariffs up to 50% on a wide range of imports from India. The tariff hike, which will come into effect on January 1, 2026, will see duties up to 50% on goods like autos, auto parts, textiles, plastics and steel from countries that don’t have a trade deal with Mexico.
However, analysts said the move was seemingly a bid to appease Trump before a review by Washington of the US-Mexico-Canada trade agreement (USMCA). The US is Mexico’s largest trading partner. The fresh tariff move comes after Mexico stepped up levies on Chinese goods earlier this year. However, Trump has continued to raise concerns and has continuously, over the past few months, railed against the Sheinbaum government.
Trump has threatened 50% duties on Mexican steel and aluminium, as well as an extra 25% levy for allegedly failing to stop the flow of the opioid fentanyl into the US. Earlier this week, Trump issued another tariff warning of 5% to Mexico, accusing it of breaching a 1944 deal that gives American farmers access to water. Mexico’s move to slap India with tariffs up to 50% is likely to impact bilateral trade, which hit an all-time high of $11.7 billion in 2024.
Presently, India has a significant trade surplus with Mexico. According to a report, India’s exports to Mexico were around $8.9 billion in 2024 as against imports of $2.8 billion, resulting in a significant trade balance in New Delhi’s favour. Mexico’s main imports from India were motor cars, auto parts and other passenger vehicles.
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