Mexico announced on Thursday upto a 50% tariff on imports from India. This significant move could shake New Delhi’s annual $5.75 billion shipments to its third-largest car export market. A North American country imposes a tax on Indian exporters, who are already struggling with a 50 per cent tariff from the United States, which has severely affected labour-intensive sectors.
Tariff range levied between 5 per cent and 50 per cent over 1400 products from Asian countries, including India, China, and Thailand, that do not have a trade deal with Mexico. The tax will take effect on 1 January 2026 and will apply to electronics, apparel, chemicals, and a wide range of engineering goods, including automobiles and metals.
“This has come at the wrong time. The industry is still in shock. We are still struggling with the tariffs imposed by the US, and now Mexico will also raise tariffs on India. The industry wanted a trade deal with Mexico, and if that happens, we may get relief from the duties,” said Ajay Sahai, director-general and chief executive officer of Federation of Indian Export Organisations (FIEO).
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Mexico has taken this step to safeguard its domestic industry. The government and Indian exporters are closely monitoring developments and awaiting the Mexican government’s formal notification. The Mexican government has said it is trying to determine whether the move is primarily aimed at China, amid discussions in the US about rerouting Chinese goods into the American market via Mexico.
