Mexico Imposes 50% Tariffs On India Effective 1 January 2026; This Industry To Be Affected Most

Months after the US imposed 50 per cent tariffs on most Indian imports, Mexico has reportedly approved levies of up to 50 per cent on select products imported from several Asian countries, including India and China. The tariffs will come into effect on 1 January 2026.

The measures are said to have been introduced to protect domestic industry and local producers. Mexico has imposed duties on goods such as auto parts, light vehicles, clothing, plastics, steel, household appliances, toys, textiles, furniture, footwear, leather goods, paper, cardboard, motorcycles, aluminium, trailers, glass, soaps, perfumes and cosmetics.

Apart from India, countries such as South Korea, China, Thailand and Indonesia will also be affected. Among these, China will be the most impacted, as Mexico imported goods worth $130 billion from the country in 2024.

The move is expected to generate $3.76 billion (about ₹33,910 crore) in additional revenue next year.

The Mexican tariffs will affect $1 billion worth of shipments from major Indian car exporters such as Volkswagen, Hyundai, Nissan and Maruti Suzuki, according to a report by news agency Reuters.

In 2024, Mexico’s main imports from India were motor cars, auto parts and other passenger vehicles. Mexico is India’s third-largest car export market after South Africa and Saudi Arabia.

Notably, earlier this week, former President Trump issued another tariff warning of 5 per cent to Mexico, accusing it of breaching a 1944 agreement that grants American farmers access to water.