Thu Dec 11 13:27:07 UTC 2025: Mexico to Impose Tariffs on Asian Goods, Including India, in 2026
Mexico City – Following the US’s lead, Mexico has announced it will impose tariffs of up to 50% on select imports from Asian countries, including India and China, starting January 1, 2026. The move is aimed at protecting Mexican industry, reducing reliance on imports (particularly from China, with whom Mexico has a large trade imbalance), and increasing domestic production, according to Mexican officials.
The tariffs will apply to a wide range of goods, including auto parts, light cars, clothing, plastics, steel, household appliances, toys, textiles, furniture, footwear, leather goods, paper, cardboard, motorcycles, aluminium, trailers, glass, soaps, perfumes, and cosmetics. Countries without a trade agreement with Mexico, such as India, South Korea, China, Thailand, and Indonesia, will be most affected. China, which exported $130 billion worth of goods to Mexico in 2024, is expected to be the hardest hit. China has already voiced its opposition to the tariffs, urging Mexico to reconsider its protectionist policies.
The Mexican government estimates the tariffs will generate approximately $3.8 billion in additional revenue. Some analysts suggest the tariffs are also intended to appease the US ahead of the United States-Mexico-Canada Agreement (USMCA) review.
India stands to lose a significant portion of its exports to Mexico, particularly in the automotive sector. A recent report indicates that the tariffs could impact $1 billion worth of shipments from major Indian car exporters. The import duty on cars will increase from 20% to 50%, significantly impacting India’s third-largest car export market after South Africa and Saudi Arabia. Indian industry representatives have already appealed to the Indian government to engage with Mexico to address the issue.
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