Mexico follows US imposing 50% tariffs on India
In 2023, India ranked as Mexico’s ninth-largest trading partner, recording bilateral trade valued at approximately USD 10.58 billion.
Mexico has taken a significant step toward reshaping its trade policy by approving a bill that introduces steep new tariffs on a wide range of imports from countries with which it does not have free trade agreements — including India, China, Brazil, South Korea, and several others. The move, passed by Mexico’s Senate after earlier approval in the lower house, is set to come into effect on January 1, 2026, marking a major shift in the country’s approach to global trade.
The timing is notable. Only a few months ago, US President Donald Trump shocked major trading partners by imposing 50% tariffs on goods from India, along with separate duties on India’s purchases of Russian oil. Mexico’s decision, while framed around domestic industrial protection, mirrors this tougher stance on imports, especially those arriving from Asia.
The bill was introduced in September by President Claudia Sheinbaum, who has argued that Mexico must strengthen its domestic manufacturing sectors and reduce its reliance on imported goods. According to Mexico News Daily, the legislation proposes changes to 1,463 tariff categories, spanning more than a dozen industries such as automobiles and auto parts, textiles, plastics, furniture, toys, aluminium, footwear, clothing, and glass. Under the new structure, tariffs could range anywhere from 5% to 50%, depending on the category.
Among all the affected countries, China is expected to face the largest impact due to the scale of its exports to Mexico. Mexican officials estimate that the revised tariff system could generate an additional USD 3.8 billion in revenue each year. More importantly, the government argues that the move is necessary to protect national industries that have struggled to compete against low-cost imports, particularly in the textile, apparel, and certain manufacturing sectors.
Analysts note that the policy shift is also geopolitically significant. Speaking to La Silla Rota, Mexican diplomat Horacio Saavedra described the decision as an “alignment with US trade policy,” reflecting shared concerns in Washington and Mexico City about trade practices that they say have hurt local industries. This alignment underscores how deeply intertwined North American trade politics have become since the renegotiation of NAFTA and the rise of near-shoring strategies.
India, too, will feel the effect of the new tariffs. The country was Mexico’s ninth-largest trading partner in 2023, with bilateral trade reaching USD 10.58 billion. India exported USD 8.03 billion worth of goods to Mexico — mainly automobiles and auto parts, pharmaceuticals, chemical products, and engineering goods — while importing USD 2.54 billion, primarily.
As Mexico revamps its tariff structure, businesses in India and other affected nations will now have to reassess their export strategies, supply chains, and pricing models for one of Latin America’s fastest-growing markets.