Mexico has approved a major tariff increase targeting imports from India, China and several Asian countries, marking a new escalation in the ongoing global trade tensions. The country’s Senate voted to impose duties of up to 50% on goods including autos, auto parts, textiles, plastics and steel from nations without trade agreements with Mexico. The new tariffs will take effect on January 1, 2026.
The measures are expected to generate an estimated 3.76 billion dollars in additional revenue. Mexican President Claudia Sheinbaum aims to strengthen domestic manufacturing, though analysts suggest the move also aligns with efforts to ease pressure from the United States, Mexico’s largest trading partner. The decision comes as Washington prepares for a review of the US-Mexico-Canada Agreement, while US President Donald Trump continues to push Mexico on trade and border issues.
India, which saw bilateral trade with Mexico reach a record 11.7 billion dollars in 2024, may face notable impact. India currently maintains a trade surplus, exporting around 8.9 billion dollars to Mexico. Key exports such as motor cars and auto parts are now likely to see slower demand due to the steep tariff hike.
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