After the US, Mexico Slaps 50% Tariff on Indian Goods; China Also Hit — What It Means for India

New Delhi: Days after the United States imposed steep tariffs on several trading partners, its close ally Mexico has now approved up to 50% tariffs on imports from India, China and several other Asian nations. The Mexican Senate has cleared the bill despite resistance from domestic industry groups and objections from affected countries. The new tariff regime will come into effect from 2026.

Mexico is currently America’s largest trading partner, and this move is being seen as a major protectionist push ahead of the crucial review of the US-Mexico-Canada Agreement (USMCA).

According to a Reuters report, this is Mexico’s strongest attempt in years to shield local manufacturers from growing import competition. The tariffs apply specifically to countries that do not have a free trade agreement with Mexico — including India, China, South Korea, Thailand and Indonesia.

What Mexico Will Tax

Under the new rules:

• Autos, auto parts, textiles, apparel, plastics and steel will attract up to 50% tariff.
• Most other imports will carry duties of up to 35%.
• Mexico expects to generate $3.76 billion in additional revenue next year, helping reduce its fiscal deficit.

India–Mexico Trade: A Rapidly Growing Relationship

India’s exports to Mexico have soared in recent years:

• 2020: $4.25 billion
• 2024: $8.98 billion (almost double)
• 2023 growth: Nearly 6.5% year-on-year

Indian goods enjoy strong demand in Mexico, especially motorcycles, automobiles, machinery, organic chemicals, aluminium and pharmaceuticals. With imports from Mexico at $2.74 billion in 2024, India enjoys a trade surplus with the Latin American nation.

However, the new tariff structure is likely to affect India’s competitive edge, especially in fast-growing sectors.

Motorcycles: A Key Export Hit by Tariffs

Indian two-wheelers are extremely popular in the Mexican market. Companies export:

• Motorcycles and scooters
• Three-wheelers
• Auto components
• Electrical equipment
• Machinery

The auto and two-wheeler categories form a significant portion of India’s export basket to Mexico and could face the biggest impact from the 50% tariff.

✔ A shorter digital-friendly version
✔ A headline options list
✔ A TV news–style script