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Mexico Hits India With 50% Tariffs. This Will Be Most Impacted Sector

Mexico raises tariffs up to 50% on 1,400+ goods from non-FTA countries including India to protect local jobs and manufacturing, impacting $1.8 billion in Indian vehicle exports.

  • On Wednesday, Mexico's Senate approved a tariff overhaul raising duties up to 50% on more than 1,400 products from countries including India and China, effective from April.
  • President Claudia Sheinbaum's administration said the decision aims to safeguard domestic jobs and support local manufacturing, and officials framed it as a response to cheaper Chinese goods entering Mexico.
  • India exported $5.63 billion to Mexico in 2025, with vehicle shipments totaling $1.86 billion, and the tariff hike could impact around $1.86 billion in vehicle exports from Indian automakers including Volkswagen and Hyundai.
  • Industry representatives urged Indian authorities to intervene, Reuters reported, as Indian automakers face risk with Mexico as their third-largest car export market, though The Hindu said overall exports may not suffer.
  • Amid wider trade frictions, Mexico's move extends tariffs from April 2024 as the United States imposed a combined 50% tariff on India; other affected countries include China, South Korea, Thailand, Indonesia, Brazil, South Africa and United Arab Emirates.
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The new tariffs approved by the Congress of the Union against countries with which Mexico does not have trade agreements will come to strengthen the country’s revenues in 2026, since it is estimated that they will contribute 27% of the import tariffs. Economy secretary Marcelo Ebrard explained in a conference that the implementation of the new tariffs, ranging from 5% to 50%, are part of a comprehensive strategy that seeks to boost the well-bein…

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Mathrubhumi broke the news in Kerala, India on Thursday, December 11, 2025.
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