US EditionWhy Is Mexico Raising Tariffs on Indian Goods? How Big Will the Impact Be?
Mexico's Senate extended tariffs up to 50% on Indian auto and engineering exports, risking key sectors despite India’s overall export impact being limited to 1.3%, trade data shows.
- On December 10, 2025, Mexico's Senate approved extending tariffs of up to 50% on imports from Asian countries, including India, documents show the duties have been in place since April 2024 and target the automobile sector.
- Mexico is imposing the duties on non‑FTA partners, including India, as officials say the aim is to strengthen domestic manufacturing and protect local jobs under President Claudia Sheinbaum's administration.
- Automobiles and auto parts account for $8.4 billion, with $8.4 billion in exports, and motorcycles make up 7%, exposing sectoral concentration risks.
- Industry groups appealed to the Indian government for support, with the Engineering Exports Promotion Council urging Piyush Goyal to start FTA talks after April 2024 tariffs; Mexico's finance ministry estimates nearly 52 billion pesos in additional revenue and a Reuters analysis projected $3.76 billion fiscal gains.
- The legislation grants expanded authority to Mexico's Economy Ministry to modify tariffs on non‑FTA countries, raising prospects of frequent adjustments as North American partners curb Chinese inputs, with Chinese automotive firms now holding about 20% of Mexico's market, a concern supported by Mexican domestic auto groups.
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Explained: Winners and losers of Mexico's new tariff strike on India
Starting January 1, 2026, Mexico will impose tariffs of 5%–50% on 1,460 products from non-FTA countries, targeting cheap Chinese imports but severely impacting India’s auto, steel, textile, and chemical exports.
Why is Mexico raising tariffs on Indian goods? How big will the impact be?
Mexico will impose higher import duties on over 1,400 tariff lines from countries without trade agreements, including India, China, South Korea, Thailand and Indonesia. Duties will rise to 35-50 per cent, impacting India’s $5.3 billion export basket. India’s vehicle exports — worth nearly $1 billion — face the steepest jump, with tariffs increasing from 20 per cent to 50 per cent
Mexico Slaps 50% Tariffs On India. $1 Billion Exports In Crosshairs
Four months after the US imposed 50 per cent tariffs on India for most goods, Mexico has approved levies of up to 50 per cent on the import of select products from Asian countries, including from India and China.
Mexico’s auto tariff hike to hit $1 billion India car exports
Mexico’s decision to raise tariffs as high as 50 per cent will affect $1 billion worth of shipments from major Indian car exporters, including Volkswagen and Hyundai, despite industry lobbying to persuade New Delhi to prevent such a move, according to two sources and a letter from an industry group reviewed
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