Mexico has become the latest country to target New Delhi with steep import duties, approving tariffs as high as 50% on goods from India, China and several Asian nations. The new tariff structure — effective January 1, 2026 — applies to imports like automobiles, auto components, plastics, steel and textiles from countries without a formal trade agreement with Mexico.
The move follows the US imposing similarly high tariffs on Indian goods, and analysts believe Mexico's action is aimed at appeasing US President Donald Trump ahead of the 2026 review of the US-Mexico-Canada Agreement (USMCA). Trump has repeatedly criticised the Mexican government and recently threatened additional duties on Mexican steel, aluminium and agricultural trade.
Mexico expects to raise $3.76 billion (₹33,910 crore) in revenue from these new duties. For India, the impact could be substantial: bilateral trade reached a record $11.7 billion in 2024, with India enjoying a large surplus. India’s key exports to Mexico — including motor cars, passenger vehicles and auto parts — may now face significant cost pressures in the Mexican market.
The tariff escalation adds a new layer to the ongoing global trade war, signalling rising economic pressure on India even as geopolitical tensions deepen.
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