Mexico to impose new tariffs on goods from China, India
Mexico has approved tariffs of up to 50% on imports from China, India, and other non-FTA countries, effective January 1, 2026.
These levies target over 1,400 products, including vehicles, auto parts, apparel, electronics, metals, chemicals, and appliances. Rates range from 5% to 50%, with most at 35%, aimed at protecting Mexican domestic industries amid pressure from the US.
Indian exports to Mexico, valued at around $8 billion annually, face disruptions, especially $1 billion in auto shipments from companies like Volkswagen and Hyundai. Engineering goods, automobiles, and textiles will see higher costs, prompting Indian exporters to push for a free trade agreement.
The move counters cheap Chinese imports while responding to US President Donald Trump’s tariff threats on Mexico. China has criticized the policy, launching a trade investigation, as Mexico seeks to boost local production and revenue by $3.8 billion yearly.
