New Delhi: Mexico has joined the growing list of countries imposing heavy tariffs on Asian imports. Just four months after the United States imposed 50% duties on Indian products, Mexico too approved levies of up to 50% on select goods from several nations, including India, China, South Korea, Thailand and Indonesia. These tariffs are set to come into effect from January 1, 2026.
According to the Mexican daily El Universal, the affected products include auto parts, light cars, clothing, plastics, steel, household appliances, toys, textiles, furniture, footwear, leather goods, paper, cardboard, motorcycles, aluminum, trailers, glass, soaps, perfumes and cosmetics.
The move is primarily aimed at protecting domestic producers and reducing the country’s dependency on imports from Asia.
Why Mexico Is Taking This Step
The Mexican government’s strategy is to bolster domestic production while reducing reliance on imports, particularly from China, which holds a substantial trade imbalance with Mexico.
China, in response, issued a statement on Thursday (December 11), stating that it “always opposes unilateral tariff hikes in all forms” and urged Mexico to “correct its wrong practices of unilateralism and protectionism at an early date”.
The tariffs are expected to generate an additional revenue of roughly US $3.8 billion (around Rs 33,910 crore) for Mexico.
President Claudia Sheinbaum has also emphasised that supporting domestic industries is a way to create jobs. “We believe that supporting (Mexican) industry is to create jobs,” said Deputy Ricardo Monreal, Morena’s leader in the Chamber of Deputies, according to mexiconewsdaily.com.
Economic analysts, however, suggest there may be a geopolitical dimension as well. El Financier, a Mexican economic outlet, states that the tariffs could be part of Mexico’s efforts to align with the United States ahead of the upcoming US-Mexico-Canada trade review.
Impact On India’s Exports
India is likely to feel the impact immediately, particularly in the automobile sector. The new duties will affect around $1 billion worth of Indian exports to Mexico, including vehicles from major manufacturers like Volkswagen, Hyundai, Nissan, and Maruti Suzuki, Reuters reported.
The import duty on cars will rise from 20% to 50%, a major blow to exporters in one of India’s important overseas markets.
“The proposed tariff hike is expected to have a direct impact on Indian automobile exports to Mexico…we seek Government of India’s support to kindly engage with the Mexican government,” the industry body wrote to the Ministry of Commerce before the tariffs were finalised.
Mexico ranks as India’s third-largest car export market after South Africa and Saudi Arabia. With the new levies, exporters may have to rethink pricing strategies and supply chains to maintain competitiveness.
As Mexico takes steps to protect its domestic industries, exporters from India and other affected Asian nations will have to navigate a challenging trade landscape, while policymakers look for diplomatic solutions to preserve market access.
