Mexico has approved a major change to its trade policy, announcing that it will increase tariffs on several imported goods from India, China and other Asian countries starting 2026. The tariff increase may go up to 50%, affecting thousands of products across key industries.
What Mexico Has Announced
- Mexico’s Senate has passed a proposal to introduce higher import duties on countries that do not have a free-trade agreement with Mexico.
- The new tariff structure targets around 1,400 product categories, including:
- Automobiles and auto parts
- Textiles and apparel
- Plastics
- Steel and metal goods
- Footwear
- Machinery and manufactured products
- Countries affected include India, China, South Korea, Thailand, Indonesia, Vietnam and others.
Why Mexico Is Increasing Tariffs
Mexico says the tariff hike is aimed at protecting domestic industries. The government wants to reduce its dependence on low-cost imports and encourage more local manufacturing — especially as global supply chains continue to shift.
The decision also comes ahead of key trade reviews under the US-Mexico-Canada Agreement (USMCA). Analysts see this as Mexico preparing to realign its import policies to match changing global trade conditions.
How This Affects India and Other Asian Countries
The tariff increase may impact exporters in India, particularly those dealing in:
- Auto components
- Apparel and textiles
- Plastics and polymers
- Steel and metal products
- Footwear and industrial goods
Importers in Mexico may face higher costs, which could reduce demand for products from India and Asia. Exporters may need to re-evaluate pricing or explore alternative markets.
What Happens Next
The higher tariffs are expected to come into effect in early 2026. Countries affected may seek trade discussions or negotiate to minimise the impact. Industry leaders in India are already assessing how the change could influence export volumes.
