Mexico Imposes Up to 50% Tariffs on Imports from India, China and Other Asian Nations

Mexico has approved a sweeping tariff overhaul that will sharply raise import duties—up to 50%—on more than 1,400 products from countries without a trade pact, placing India among the major economies impacted by the new rules.

The Senate passed the measure with a strong majority, marking a dramatic shift away from Mexico’s long-standing free-trade approach. The revised tariffs will take effect in 2025 and expand through 2026, covering a wide range of industrial inputs and consumer goods, including automobiles, auto parts, textiles, metals, plastics, footwear and machinery. While the highest duties will reach 50%, most items will fall under the 35% bracket.

The targeted nations include China, India, South Korea, Thailand and Indonesia.

Domestic industry bodies and China had strongly objected to the bill, but lawmakers pushed it through, arguing that the new structure will protect local manufacturers and strengthen Mexico’s participation in global supply chains.

Impact on India

India, aiming to expand exports of textiles, engineering goods and auto components to Latin America, now faces a much tougher pathway into Mexico—the region’s second-largest economy and a strategic gateway to the US.

Key concerns for Indian exporters include rising landed costs, reduced competitiveness and disruptions in supply-chain routing via Mexico, which has long served as an entry point into the North American market. The commerce ministry has not yet commented on the development.

US Factor Behind the Tariffs

Analysts believe the tariffs reflect growing US pressure on Mexico ahead of next year’s USMCA review, especially as Washington tightens measures on Chinese goods. Mexico’s new tariff structure mirrors several recent US trade actions, although President Claudia Sheinbaum denies any direct linkage.

An earlier, more aggressive proposal was softened, but the government still expects nearly 52 billion pesos (₹19,000 crore) in additional revenue next year to help offset its fiscal deficit.

Domestic Response

Reactions in Mexico remain mixed.

Opposition lawmakers argue the tariffs act as a burden on consumers and lack clarity on revenue utilisation. Ruling party members insist the move will protect jobs and strengthen local industries. Auto sector groups strongly support the decision, noting that Chinese car imports—now at 20% of Mexico’s market—pose a threat to domestic manufacturers. Under the new rules, imported Chinese cars will face the maximum 50% duty.

The legislation also grants Mexico’s Economy Ministry broad powers to revise tariffs on non-FTA nations, signaling potential future changes as North America shifts further toward protectionist trade policies.