Tariffs: Now, Mexico imposes levies on India, China, and others
Virendra Pandit
New Delhi: Even as the US negotiators are currently in India for a potential trade deal, America’s neighbour Mexico has announced levies of up to 50 percent on the import of select products from Asian countries, including India and China, the media reported on Thursday.
According to Mexican economic news outlet El Financier, analysts believe the tariffs are intended to appease President Donald Trump ahead of the United States-Mexico-Canada review.
Four months after the US imposed 50 percent tariffs on India for most goods, Mexico has imposed these levies, ostensibly to protect its indigenous industry and producers, with effect from January 1, 2026.
China will be the most impacted, as Mexico imported USD130 billion worth of products from the Asian country in 2024.
Mexico has imposed duties on goods such as 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, according to El Universal, a Mexican daily.
Countries that do not have a trade deal with Mexico will be most impacted. They include India, South Korea, China, Thailand, and Indonesia.
The reasons behind the move is said to be Mexico’s attempts to reduce reliance on imports from Asian countries, especially China, with which it has a significant trade imbalance.
Reacting to the step, China on Thursday said that it has “always opposed unilateral tariff hikes in all forms” and urged Mexico to “correct its wrong practices of unilateralism and protectionism at an early date.”
The proposed tariffs are expected to generate additional revenue of USD 3.8 billion (about Rs 33,910 crore).
Mexican President Claudia Sheinbaum also wants to provide greater protection for her country’s industry and increase domestic output.
“We believe that supporting (Mexican) industry is to create jobs,” Ricardo Monreal, Morena’s leader in the Chamber of Deputies, said.
Impact on India
The Mexican tariffs will affect about USD 1 billion worth of shipments from major Indian car exporters, such as Volkswagen, Hyundai, Nissan and Maruti Suzuki, per a report by Reuters.
The import duty on cars will rise from 30 percent to 50 percent, dealing a significant blow to India’s largest vehicle exporters.
“The proposed tariff hike is expected to have a direct impact on Indian automobile exports to Mexico…we seek Government of India’s support to kindly engage with the Mexican government,” an industry body said in its letter to the Union Commerce Ministry before the tariff was finalised.
Mexico is India’s third-largest car export market after South Africa and Saudi Arabia.
