After the US’s sky-high 50% tariffs on Indian imports, another country has opened a new front against New Delhi amid the raging global trade war. On Wednesday, Mexico’s Senate approved tariffs up to 50% on a wide range of imports from India, China and several other Asian nations, Reuters reported. All of this seemingly to please Trump.
The tariff hike, which will come into effect on January 1, 2026, will see duties up to 50% on goods like autos, auto parts, textiles, plastics and steel from countries that don’t have a trade deal with Mexico. This means countries like India, South Korea, China, Thailand, and Indonesia will be impacted.
The move is intended to generate $3.76 billion (about Rs 33,910 crore) in additional revenue next year.
The development comes at a time when Mexican President Claudia Sheinbaum looks to boost domestic production. However, analysts said the move was seemingly a bid to appease Trump before a review by Washington of the US-Mexico-Canada trade agreement (USMCA). The US is Mexico’s largest trading partner.
The fresh tariff move comes after Mexico stepped up levies on Chinese goods earlier this year. However, Trump has continued to raise concerns and has continuously, over the past few months, railed against the Sheinbaum government.
Mexico’s move to slap India with tariffs up to 50% is likely to impact bilateral trade, which hit an all-time high of $11.7 billion in 2024. India ranks as the ninth destination for Mexican exports.
Presently, India has a significant trade surplus with Mexico. According to a report, India’s exports to Mexico were around $8.9 billion in 2024 as against imports of $2.8 billion, resulting in a significant trade balance in New Delhi’s favour.
