Mexico on Wednesday approved the imposition of tariffs from next year on hundreds of imported goods from countries with which it does not have trade agreements, including India and China.
President Claudia Sheinbaum’s administration said the decision aims to safeguard domestic jobs and support local manufacturing.
The move is expected to have significant implications for Indian automakers, as Mexico is India’s third-largest car export destination after South Africa and Saudi Arabia, Reuters reported.
Senate Approval: Duties Raised on Over 1,400 Products
According to Reuters, Mexico’s Senate has endorsed a tariff overhaul that increases duties, up to 50 per cent in some cases, on more than 1,400 products sourced from non-FTA partner countries.
Mexico Tariffs on India: Sectors Most Exposed
Impact on Indian Carmakers: The tariff hike, which could go as high as 50 per cent, is expected to affect around $1.8 billion (approximately Rs 14,940 crore) in vehicle exports from major automakers shipping from India, including Volkswagen and Hyundai. Reuters reported that industry representatives are urging Indian authorities to intervene, citing a letter from an industry group reviewed by the agency.
India exported goods worth $5.63 billion (roughly Rs 5,085 crore) to Mexico in 2025, with vehicles forming the dominant share, according to tradingeconomics.com.
Other Indian Exports at Risk: Among India’s shipments to Mexico in 2025, the largest categories included:
- Vehicles (excluding railway) – $1.86 billion
- Electrical and electronic equipment – $612.38 million
- Machinery, nuclear reactors, boilers – $560.87 million
- Organic chemicals – $388.04 million
- Aluminium – $386.03 million
- Pharmaceutical products – $211.20 million
