Mexico has announced steep tariffs of up to 50 percent on a wide range of imports from India and several Asian nations that lack trade agreements with Mexico City. The decision follows strong pressure from Washington to curb Mexico’s economic links with China. Local industry groups warn that the tariff hike will raise production costs and hurt consumers.
India and Mexico share a strong trade relationship worth over USD 8.4 billion. The new duties will hit auto parts, cars, textiles, plastics, footwear, steel, furniture, and more. The automobile sector faces the hardest blow. Mexico has raised import duty on cars to 50 percent from 20 percent. This change threatens nearly USD 1 billion worth of Indian car exports. Volkswagen, Hyundai, Nissan, and Maruti Suzuki rely on Mexico as a key export market.
Industry groups asked India’s commerce ministry to persuade Mexico to avoid tariff hikes, but no next steps are clear. Manufacturers may now need to rethink export strategies, as Mexico is India’s third-largest car export destination.
Mexico says the move will protect local industry and strengthen domestic markets. Analysts argue the real driver is the upcoming USMCA review and pressure from the United States.
