Mexico has introduced steep new tariffs on a wide range of Asian imports, signaling a major shift from its traditional pro-free-trade stance. The country’s Senate has approved a new tariff regime that increases duties, with some reaching as high as 50%, on over 1,400 products imported from countries without formal trade agreements with Mexico. The move affects key exporting nations like China, India, South Korea, Thailand, and Indonesia, according to Reuters.
The Mexican Senate has approved a new bill imposing tariffs on Asian imports, including from India, with 76 votes in favor. Starting next year and continuing through 2026, tariffs will apply to a range of goods, including textiles, auto parts, and metals, with duties reaching up to 50%. This shift poses a challenge for India, which relies on Mexico as a key gateway to the US market. The higher tariffs could increase costs for Indian exporters, reduce competitiveness in sectors like textiles and auto parts, and prompt companies to reconsider supply-chain strategies. The Indian Ministry of Commerce has yet to respond.
Analysts link Mexico’s tariffs to U.S. influence ahead of USMCA review
Analysts suggest that pressure from the United States has influenced Mexico’s new protectionist tariffs ahead of the USMCA review next year. President Claudia Sheinbaum’s government appears to align with the U.S.’s tougher stance on Chinese goods, aiming to ease U.S. tariffs on Mexican exports. Although Sheinbaum denied U.S. involvement, the new duties closely resemble American trade actions. The revised bill is less severe than the initial proposal, but Mexico expects to raise nearly 52 billion pesos in revenue. Reactions within Mexico are mixed: some fear higher costs for consumers, while others argue the move will protect local industries. The new rules also grant Mexico’s Economy Ministry the power to adjust tariffs, creating uncertainty for Indian exporters.
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