Mexico: 50% Tariffs Target $1 Billion in Indian Exports Amid Global Trade Tensions
In a move echoing recent U.S. trade actions, Mexico has greenlit tariffs as high as 50 percent on a wide array of imports from several Asian nations, placing roughly $1 billion of Indian exports squarely in the line of fire.
The duties, designed to shield domestic manufacturers and cut import dependency, will take effect on January 1, 2026. They target categories including auto components, passenger vehicles, apparel, plastics, steel products, consumer electronics, toys, fabrics, furnishings, shoes, leather items, paper goods, two-wheelers, aluminum wares, trailers, glassware, cleaning agents, fragrances, and beauty products, according to the Mexican newspaper El Universal.
Nations lacking free trade pacts with Mexico—such as India, South Korea, China, Thailand, and Indonesia—stand to feel the brunt. This comes just four months after the United States rolled out 50 percent tariffs on most Indian goods.
At the heart of the policy is Mexico’s drive to narrow its yawning trade gap with Asia, particularly China, from which it imported $130 billion in goods last year. The levies are projected to swell government coffers by $3.8 billion, or about Rs 33,910 crore. President Claudia Sheinbaum’s administration views them as a bulwark for local production and job growth. “We believe that supporting [Mexican] industry is to create jobs,” stated Deputy Ricardo Monreal, head of the Morena party in the Chamber of Deputies, as reported by mexiconewsdaily.com.
China, the hardest hit, swiftly condemned the measures. On Thursday, Beijing declared it “has always opposed unilateral tariff hikes in all forms” and called on Mexico to abandon its “wrong practices of unilateralism and protectionism at an early date.”
For India, the fallout centers on its automotive sector. Shipments valued at $1 billion from key players like Volkswagen, Hyundai, Nissan, and Maruti Suzuki face steeper costs, with vehicle import duties jumping from 20 percent to 50 percent, per a Reuters analysis. Mexico ranks as India’s third-biggest auto export destination, trailing only South Africa and Saudi Arabia. In a preemptive plea to India’s commerce ministry, the automotive industry association urged diplomatic intervention, warning of “a direct impact on Indian automobile exports to Mexico.”
Some observers, cited by the Mexican business publication El Financiero, suggest the tariffs also serve to placate Washington as the United States-Mexico-Canada Agreement undergoes review. As global supply chains strain under protectionist pressures, these barriers underscore the fragility of emerging markets’ trade links.