Mexico Tariffs: Mexico, which is the 31st largest trading partner of India, has announced up to 50 percent tariffs on more than 140 imported products from Asian countries without free trade agreements (FTAs).
Why Have Mexico Tariffs Being Imposed?
Mexico’s move is seen by many as a gesture to move closely with US President Donald J Trump. The bill’s passage coincides with President Claudia Sheinbaum’s ongoing trade talks with President Donald Trump. The move is seen as an attempt by Mexico to address the complaints by Washington regarding the transshipment of Chinese goods through Mexico into the US market.
Trump had expressed anger over Mexico on its failure to stop the flow of the opioid fentanyl into the US. It has threatened Mexico with 50 percent duties on Mexican steel and aluminum, as well as an extra 25 percent levy for the opioid fentanyl failure.
What Are Mexico Tariffs?
Starting next year, Mexico will impose tariffs ranging from 5-50 percent on a wide variety of goods such as metals, auto parts, clothing and textiles, finished vehicles, machinery and industry components.
Mexico tariffs, with effect from January 1, 2026, explicitly target countries such as India, China, Thailand, Indonesia and South Korea.
According to the finance ministry of the country, Mexico tariffs will help raise 52 billion pesos ($2.8 billion) in additional revenue next year.
The move is primarily seen by industry experts as a measure against China. China runs a trade surplus of $71 billion with Mexico. Furthermore, Chinese factories have been rapidly increasing their share of the auto market in Mexico, holding approximately 20 percent. The legislation states Chinese cars will face the maximum tariff of 50 percent.
Beijing’s Reaction to Mexico Tariffs
Beijing criticized the Mexico tariffs and said it is hopeful that the Latin American country will immediately correct its erroneous practices of protectionism and unilateralism. It was further added that China would be closely monitoring the implementation of these measures while assessing their overall impact.
India Exports To Mexico
According to the United Nations COMTRADE database on international trade, the value of India’s exports to Mexico was $5.63 billion during 2024. Vehicles remain the largest export of India to Mexico, including fully built units such as Kia Magnite, Volkswagen models, Maruti Suzuki units, Hyundai Creta and Skoda vehicles.
Will India be hit by Mexico tariffs?
Mexican importers who rely on machinery, pharmaceuticals, chemical products, automotive components and textiles from India may face higher costs depending on the final tariff schedule.
India is not likely to be hit much by Mexico tariffs as Mexico is its 31st largest trading partner and the share of exports is not much for India to be much bothered about.
