Mexico has imposed up to 50% tariffs on imports from non-preferential trade partners,including India,even as the two nations have started discussions for a free-trade agreement (FTA). Analysts said the key targets of the South American nationS unilateral decision to raise tariffs are autos, auto parts, textiles, apparel, plastics, steel, metals and footwear.
Under the decision,Mexico will impose steep import tariffs – ranging from about 5 per cent to as high as 50 per cent on a wide range of goods (about 1,463 tariff lines) from countries that do not have free trade agreements with Mexico,including India,China,south Korea,Thailand and Indonesia. However, the list of items covered is yet to be officially notified. The higher duties will take effect on January 1,2026.
Jahol Prajapati, research analyst at SAMCO Securities, said, “Mexico’s Senate has cleared a protectionist tariff package imposing 5-50% duties on more than 1,400 import lines from countries without FTAs, including India, effective 1 January 2026. Autos, auto parts, textiles, apparel, plastics, steel, metals and footwear are key targets; moast products will cluster around the 35% slab, but passenger vehicle duty will jump from 20% to 50%. India exported goods worth about 5.7 billion US dollars to Mexico in FY202425, with vehicles contributing roughly one-third.”