Mexico impose upto 50% tarrifs on Indian import
Why in news?
Mexico has approved tariffs of up to 50% on imports from India and other non-FTA Asian countries, effective January 1, 2026. This policy shift targets over 1,400 products to protect domestic industries and generate additional revenue.​
Reasons Behind
- Mexican President Claudia Sheinbaum aims to boost local manufacturing and jobs amid pressure from the US ahead of the USMCA review.
- Analysts link it to US President Donald Trump's tariff threats on Mexico, including on steel and autos, prompting alignment with North American protectionism.
- Earlier hikes on Chinese goods set the stage for this broader policy.​
Impact on India
- Indian auto exports worth around $1 billion, including from Volkswagen and Hyundai, face major hurdles as Mexico is India's third-largest car market.
- Textiles, steel, and engineering goods lose competitiveness, potentially raising costs and disrupting supply chains to North America.
Trade volume and balance
- Bilateral goods trade has expanded strongly in recent years, crossing around 10–12 billion US dollars annually and reaching roughly 11–12 billion in 2024.
- India runs a consistent surplus: in 2024 India’s exports to Mexico were about 8.9 billion US dollars against imports of about 2.8 billion US dollars, marking multiple consecutive years of surplus in India’s favour.​
Main traded products
India’s key exports to Mexico include:
- Vehicles and auto components (cars, parts, tyres) forming the single largest item.
- Machinery, electrical and electronic equipment, organic chemicals, aluminium, textiles, and pharmaceuticals.​
Mexico’s main exports to India are:
- Mineral fuels and oils, especially crude and refined products.
- Electrical and electronic equipment, machinery, optical/medical instruments, gold and other precious metals.​
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