Mexico Announces Up To 50% Tariffs On India, China And Other Asian Countries — Details Inside
The revised duties will directly affect segments in which Indian companies have an established foothold, particularly automakers, as it remain India’s largest export to Mexico.
Mexico will raise import tariffs on goods from India and other Asian countries starting in 2026, with increases of up to 50%, a move that will hit India’s exports in sectors where it has built stable demand, especially passenger vehicles and auto components.
Mexico’s Senate has voted to impose tariffs ranging from 5% to 50% on a list of over 1,400 items imported from Asian nations without trade pacts with Mexico, according to a report by Associated Press, which added that the lawmakers passed the bill with 76 votes in favour, five against and 35 abstentions. The increases will apply from January and will cover textiles, footwear, household appliances, cars and auto components.
Mexico is India’s thirty-first largest trading partner. Data from India’s commerce ministry show that bilateral trade reached $8.6 billion between April 2024 and March 2025, Bloomberg had reported last month quoting Indian government data.
The tariff push comes as President Claudia Sheinbaum entered her second year in office. Her administration has centred its trade strategy on preventing tariff pressure from the United States, Mexico’s main trading partner. The newly approved duties on Asian-made goods, especially those from China, add another variable to those efforts.
The development also came at a time where India is facing tariff pressure from the United States as President Donald Trump’s ignited trade conflict with several countries. New Delhi aims to settle the trade issues with Washington soon.
India's Trade Exposure
The revised duties will directly affect segments in which Indian companies have an established foothold. Vehicles remain India’s largest export to Mexico, including fully built units such as the Hyundai Creta, Kia Magnite, Volkswagen models, Maruti Suzuki units and Skoda vehicles. Auto parts also make up a significant portion of India’s shipments.
India’s ambassador to Mexico, Pankaj Sharma, noted that more than 250 Indian firms operate in the country, including UPL in fertilisers and agrochemicals, according to a Bloomberg report. He told Bloomberg that Indian investment in Mexico totalled about $650 million last year. Sharma added that the trade balance had turned uneven over time.
“Our trade is much below the potential that both countries have today,” he told Bloomberg in an interview in November. “I think it is time that we focus on each other.”
