After the US, Mexico has raised tariffs up to 50 per cent on Indian exports. Asian countries like China, South Korea and Thailand will also face the new tariffs. This protectionist measure is likely to affect exports of auto and auto components, iron, steel, aluminium and their derivatives, electrical machinery and equipment, apparel and textiles, and organic chemicals from India and the industry wants the government to enter a trade deal with Mexico.
Mexico approved new tariffs on Asian imports, broadly aligning with US efforts to tighten trade barriers against Asian countries like China, India, Thailand and South Korea, which do not have trade deals with Mexico.
Tariffs ranging from 5 per cent to 50 per cent will be levied on more than 1,400 products from Asian nations that don’t have a trade deal with Mexico. The products include auto parts, light vehicles, clothing, plastics, steel, textile, furniture, leather, footwear, chemicals and machinery. For most of the affected products, the tariff may increase generally up to 35 per cent. However, the import duty on cars will rise to 50 per cent.
India had exported $5.749 billion worth goods to Mexico in FY25 and in FY26 till October, the exports stood at $2.292 billion. Auto and auto components accounted for $1.944 billion last year and these products will face a 50 per cent tariff.
Other major categories included iron and steel and their derivatives, aluminium and derivatives, electrical machinery and equipment, apparels and textiles, cotton, nuclear reactors, boilers and machinery, organic chemicals and pharmaceuticals. While Indian pharmaceuticals may not face high tariffs, other products are likely to get affected.
“Several metals and engineering products are going to be badly affected by the Mexico tariffs. Mexico has been a big market for engineering products. The Indian government has to initiate trade negotiations and sign a trade deal with Mexico as soon as possible. We have requested the government to take steps in this direction. After the US tariffs, the increased duties on Mexico-bound products will severely hit the industry,” Pankaj Chadha, chairman, EEPC India.
As per reports, the US has been putting pressure on Mexico to increase tariffs to check Chinese imports. Mexico’s tariffs on Chinese and other Asian imports may result in US easing tariffs on Mexican steel and aluminium. However, Mexico has denied any connection to Trump’s tariff onslaught. Meanwhile, Mexican manufacturers dependent on inputs from China, India and other Asian countries, warned of rising costs that could fan inflation.
After the US, Mexico has raised tariffs up to 50 per cent on Indian exports. Asian countries like China, South Korea and Thailand will also face the new tariffs. This protectionist measure is likely to affect exports of auto and auto components, iron, steel, aluminium and their derivatives, electrical machinery and equipment, apparel and textiles, and organic chemicals from India and the industry wants the government to enter a trade deal with Mexico.
