New Delhi, Dec 11 (UNI) Mexico has approved a steep tariff hike of up to 50 per cent on imports from India, delivering a blow to Indian exporters, especially auto manufacturers who depend heavily on the Mexican market.
The new duties will come into effect on January 1, 2026, covering hundreds of products from countries that do not have a free trade agreement with Mexico.
Mexico’s bicameral parliament approved the sweeping tariff package of up to 50 per cent from the year 2026 on the import of select products from Asian countries, including India and China, to protect its indigenous industry and producers, media reports in the North American nation said.
The Lower House of Mexican parliament – the Chamber of Deputies – first passed the raised tariff with 281 votes in favour, 24 against and 149 abstentions. Later, the Senate – the Upper House – ratified the package.
This marks the Mexican government’s most aggressive moves in recent years to bolster domestic industry and narrow its trade deficit.
The measure was passed in the Lower House on Wednesday with 281 votes in favour, 24 against and 149 abstentions, but still requires the approval of the Senate – the Upper House.
As reported, the move has already triggered concern among Mexican industry groups over potential supply chain disruptions and cost pressures.
As per the reports, the tariff schedule covers a broad set of sectors, including auto parts, textiles, apparel, plastics and steel.
The government has pitched the policy as a domestic manufacturing initiative.
Among the other countries that will be affected are South Korea, Thailand, Indonesia, Brazil, South Africa and the United Arab Emirates.
Earlier this year, the Mexican government estimated that the proposed tariffs would generate additional revenue of USD 3.8 billion per year.
Notably, China has been vocal against the imposition of such tariffs by Mexico. Chinese national news agency Xinhua quoted a spokesperson of the Chinese Commerce Ministry as saying that the country has always opposed unilateral tariff hikes in all forms.
China also urged Mexico to correct its wrong practices of unilateralism and protectionism at an early date.
The United States earlier shared concerns that goods originating in Asia could gain access to the US via Mexico and Canada.
Mexico is one of the largest destinations for Indian cars, with around USD 1 billion worth of vehicles shipped every year.
Brands like Hyundai, Nissan, Maruti Suzuki and Volkswagen export a significant share of their India-manufactured models to Mexico. The tariff hike from around 20 per cent to as high as 50 per cent will make these cars far more expensive for Mexican buyers.
The new tariff list covers a wide range of goods — electronics, machinery, chemicals, plastics, steel, textiles, footwear, toys, cosmetics and more.
Mexican lawmakers who supported the move argue that the tariffs will help revive local manufacturing and protect jobs. They say low-priced imports from Asia have been hurting domestic producers for years.
But trade watchers point out that the political backdrop cannot be ignored. With the US raising its own duties on several Asian products, Mexico may be trying to stay on the right side of Washington by taking a tougher stance on the same group of countries.
