Mexico imposes 50% tariffs on Indian goods, auto exports worth $1 billion hit

MEXICO : Mexico has announced steep new import tariffs of up to 50 per cent on goods from countries without a free-trade agreement, a move that will significantly impact Indian exports. The revised duties, effective January 1, 2026, are aimed at protecting Mexican industries and reducing dependence on imported products.

Mexico President Claudia Sheinbaum‘s government said the move is to protect local employment and manufacturing.

The new tariff structure covers more than 1,400 items, including automobiles, auto components, textiles, plastics, steel and various manufactured goods. For India, the most substantial impact will be on the automobile sector, as the import duty on cars entering Mexico will rise from around 20 per cent to 50 per cent. This change is expected to affect nearly $1 billion worth of vehicle exports from major Indian manufacturers.

Industry bodies had urged the Indian government to intervene, warning that such a move would harm exporters and disrupt established trade flows. Mexico is considered an important market for India’s automotive and industrial products, making the tariff hike a major concern for manufacturers already navigating global supply chain challenges.

Mexican authorities have defended the decision, saying the measure is intended to strengthen domestic production, support local jobs and address trade gaps.

Source : Outlook