Now Mexico Imposes 50% Tariff On Indian Goods, Major Trade Shift After US Decision

Mexico has decided to impose up to 50 percent tariffs on goods coming from India, China, and several other Asian countries. The Mexican Senate has approved these higher tariffs, which will come into effect next year. This decision comes even after strong objections from domestic trade groups and the affected countries.

Mexico is the largest trading partner of the United States, making this move even more important.

Why Mexico Took This Step

According to a Reuters report, this is one of Mexico’s strongest actions in recent years to protect local producers. The decision comes ahead of a key review of the United States–Mexico–Canada Agreement (USMCA).

The new tariffs will apply to countries that do not have a trade agreement with Mexico. These include India, China, South Korea, Thailand, and Indonesia.

Which Products Will Face Higher Tariffs?

Starting 2026:

- Cars, auto parts, textiles, clothing, plastic, and steel will face up to 50 percent tariffs

- Most other goods will face tariffs capped at 35 percent

- Mexico expects these new rates to bring in around USD 3.76 billion from next year, helping reduce its fiscal deficit.

India–Mexico Trade at a Glance

Trade between India and Mexico has grown strongly in recent years.

India’s exports to Mexico increased from USD 4.25 billion in 2020 to USD 8.98 billion in 2024-almost double.

In 2023, India’s exports grew by 6.5 percent compared to the previous year.

Mexico’s exports to India reached USD 2.74 billion in 2024.

This means India enjoys a trade surplus with Mexico.

What India Exports to Mexico?

India mainly exports:

- Motorcycles and other vehicles

- Electrical goods and machinery

- Organic chemicals

- Aluminium

- Pharmaceuticals

The auto sector-especially two-wheelers and auto parts—is one of the strongest links in India–Mexico trade.