Mexico to Slap Up to 50% Tariffs on India and Other Asian Nations Imports from 2026

Mexico’s Senate has approved a tariff plan that will significantly increase duties on imports from countries without trade agreements, including China, India, South Korea, Thailand and Indonesia, as per Reuters.  

The measure, aimed at strengthening domestic industries, follows months of debate and objections from global trading partners and local business groups. 

Tariff Hikes Across 1,400 Product Lines 

The approved framework will either raise or introduce duties generally up to 35% from 2026 on a wide range of products such as vehicles, auto components, textiles, garments, plastics and steel. In some cases, tariffs may reach as high as 50%.  

The bill passed with 76 votes in favour, 5 against and 35 abstentions, despite formal concerns raised by China and resistance from Mexican industry representatives. 

Reuters reported that the final version is softer than an earlier draft that stalled in the lower house. While it covers around 1,400 tariff lines, duties have been reduced on nearly two-thirds of the items compared to the original proposal.  

Implications For India-Mexico Trade 

India and Mexico have built a strong trade relationship over the past decade, with bilateral goods trade crossing the $10 billion mark and reaching an all-time high of $11.7 billion in 2024.  

India maintains a significant trade surplus, exporting about $8.9 billion worth of goods to Mexico in 2024 against imports of $2.8 billion. Trade between the 2 nations has grown consistently, marking the 8th straight year in which India recorded a surplus with Mexico. 

Mexico is now India’s second-largest trading partner in Latin America, after Brazil, and ranks among India’s top 10 trading partners worldwide.  

Read More: Indian Railways Set to Launch Its First Hydrogen-Powered Train! 

Conclusion 

Mexico’s move to increase tariffs on imports from Asia marks a significant policy shift aimed at protecting local industry and balancing public finances. While the changes are not targeted at any 1 country, they carry meaningful implications for leading exporters, including India, whose trade engagement with Mexico has expanded rapidly in recent years. 

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