Mexico raises tariffs on imports from India, China, and non-FTA countries

WASHINGTON, Dec 11: Mexico’s Congress has approved a bill imposing higher tariffs on imports from India, China, Brazil, South Korea, Thailand, Indonesia, South Africa, the United Arab Emirates, and other nations with which it lacks free trade agreements (FTAs).
The measure, set to take effect on January 1, 2026, was passed by the Senate after approval in the lower house.
The bill proposes adjustments to 1,463 tariff categories across sectors such as auto parts, light vehicles, plastics, toys, textiles, furniture, footwear, clothing, aluminium, and glass, with tariffs ranging from 5 to 50 per cent.
China is expected to be the most affected.
Mexican authorities aim to reduce reliance on Asian imports, particularly from China, and anticipate the tariffs will generate USD 3.8 billion in annual revenue.
Officials say the move aligns Mexico’s trade policy with the United States, following concerns over practices affecting national industries, especially in textiles and manufacturing.
The development follows US tariffs imposed on Indian goods in August 2025, which included a 50 per cent levy on certain imports and a 25 per cent tariff on India’s purchases of Russian oil.
India was Mexico’s ninth-largest trading partner in 2023, with total trade of USD 10.58 billion.
Indian exports to Mexico included automobiles, auto parts, pharmaceuticals, engineering goods, and chemicals, while Mexico mainly exported crude oil, along with gold, chemical compounds, and telecommunications equipment.
The bill, submitted to Congress by President Claudia Sheinbaum in September, reflects a broader strategy to protect domestic industries, reduce dependence on foreign imports, and enhance revenue.
Officials highlight that it addresses shared concerns with the US about the impact of foreign competition on Mexico’s manufacturing and textile sectors, signaling closer alignment with US trade policy in the region. (AP)