Mexico Hits India With 50% Tariffs; $1 Billion Exports at Risk

December 11, 2025

Mexico has announced steep tariffs of up to 50% on a wide range of imports from countries without a trade agreement, including India, China, South Korea, Thailand and Indonesia. The decision comes just four months after the US imposed similar 50% duties on Indian goods. These new tariffs, aimed at protecting Mexican industries and reducing dependence on Asian imports, will take effect on January 1, 2026.

Why Mexico Is Raising Tariffs

The Mexican government says the move is intended to reduce reliance on Asian imports—especially from China, with which it has a large trade imbalance. The tariffs are also expected to add around $3.8 billion to Mexico’s revenue. President Claudia Sheinbaum stated that the country needs to strengthen domestic industry and job creation. Analysts, however, believe the decision may also be an attempt to align more closely with US trade expectations ahead of the USMCA review.

What Products Will Be Affected

Mexico has imposed duties on a broad list of items including:

• Light vehicles and auto parts
• Steel, plastics, aluminium
• Clothing, textiles, footwear
• Furniture, paper, cardboard
• Household appliances, toys
• Leather goods, perfumes, cosmetics

China will face the biggest hit as it exported around $130 billion worth of goods to Mexico in 2024.

Impact on India’s Car Exports

India stands to face substantial losses, with nearly $1 billion worth of automotive shipments to Mexico affected. Major exporters such as Maruti Suzuki, Hyundai, Nissan and Volkswagen will be hit hardest, as tariffs on cars rise from 20% to 50%. India’s automobile industry has urged the government to open talks with Mexico to safeguard exports. Mexico is currently India’s third-largest car export market, after South Africa and Saudi Arabia.