Mexico has approved tariffs of up to 50 percent on a wide range of products from Asian countries, including India and China. The move comes four months after the United States raised tariffs on Indian goods. Mexico plans to implement the new duties on January 1, 2026. Officials said the goal is to protect domestic industries and reduce rising dependence on Asian imports.
The tariffs cover auto parts, cars, clothing, plastics, steel, appliances, toys, textiles, footwear, furniture and several other categories. Countries without trade agreements with Mexico will face the new levies. India, South Korea, China, Thailand and Indonesia are among the most affected.
Mexico is targeting its growing trade imbalance with China. The country imported $130 billion worth of Chinese goods in 2024. The government expects the new tariffs to raise an additional $3.8 billion in revenue. President Claudia Sheinbaum aims to boost local production and support Mexican manufacturers.
Analysts believe the move may also help Mexico align with US expectations ahead of the United States-Mexico-Canada Agreement review.
India faces major consequences. The tariff increase will affect nearly $1 billion in exports from major automakers such as Maruti Suzuki, Nissan, Hyundai and Volkswagen. Import duties on cars will rise from 20 percent to 50 percent, posing a significant challenge for Indian exporters.
