New Delhi, 11 December. Following the footsteps of the United States, Mexico has announced imposing a 50 percent tariff on India, China, and several other Asian countries. This decision has created significant waves in global trade circles.
The proposal has been approved by the Mexican Senate and is set to be implemented from 2026. The countries most affected by this move include China, India, South Korea, Thailand, and Indonesia, as Mexico does not have trade agreements with these nations. Consequently, the impact on these countries is expected to be substantial.
According to the proposal, in addition to the 50 percent tariff, certain goods will face an increase in duties up to 35 percent. The Senate passed the proposal with 76 votes in favour, 5 against, and 35 abstentions. Business groups have strongly opposed the Mexican Government’s decision.
From 2026 onwards, goods such as automobiles, auto parts, textiles, clothing, plastics, and steel will be subject to a 50 percent tariff. India exports vehicles, motorcycles, automobile parts, electrical goods, machinery, organic chemicals, aluminium, pharmaceuticals, textiles, and gems and jewellery to Mexico.
On the other hand, India imports crude oil, petroleum products, electronic devices, machinery, auto parts, and chemicals from Mexico. Additionally, India supplies some products to North America via Mexico. The tariff imposition may increase the cost of these goods, which could affect the market.
Trade between India and Mexico has witnessed notable growth recently. Government data shows that Indian exports to Mexico rose from 4.25 billion dollars in 2020 to 8.98 billion dollars in 2024. Imports from Mexico stood at 2.74 billion dollars in 2024. The bilateral trade between the two countries reached 11.7 billion dollars in 2024. Although trade experienced a decline during the COVID period, it has rapidly progressed since then.
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केके/एबीएम
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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