Mexico has announced steep new import tariffs of up to 50 per cent on goods coming from India and several other countries without free-trade agreements, a move expected to hit nearly $1 billion worth of Indian exports.
The tariff overhaul, approved by the Mexican Senate this week, will take effect from January 1, 2026. More than 1,400 imported products are now subject to higher duties, including automobiles, auto components, textiles, steel, plastics, household goods and clothing. India, which sends a large volume of passenger vehicles to Mexico, is among the most affected countries.
According to officials, the tariff increase aims to protect domestic industries and reduce dependence on imports, particularly from Asian economies. Mexico is also seeking to strengthen its position in global supply chains and boost local manufacturing.
India’s automobile exports face the biggest impact. Mexico is one of the largest foreign markets for India-made cars, and exporters—both Indian companies and global automakers shipping from India—anticipate a significant setback. Tariffs on vehicles are expected to rise sharply from around 20 per cent to as high as 50 per cent.
Trade experts warn that the move could raise costs for Mexican industries reliant on imported components and may strain trade ties with major partners. China has already criticised the decision, cautioning that it could disrupt regional trade flows.
The development comes amid a rise in protectionist measures worldwide, with several countries revisiting tariff structures. For India, the new duties may prompt diplomatic discussions or a rethink of export strategies for the Latin American market.