After America, another country imposes 50% tariff on India; rule to apply from 2026

New Delhi (The Uttam Hindu): The 'tariff war' that has erupted across the world now seems to be intensifying. After the US increased import duties on various countries, now Mexico has also followed the same path. Mexico has given a major economic blow to many Asian countries including China and India by imposing 'high tariffs' of up to 50 percent on goods coming from there. The Mexican Senate has approved this proposal and the new rates will come into effect from next year i.e. 2026. This decision will have the greatest impact on those countries which do not have any free trade agreement with Mexico.

This move by Mexico has created a stir in the international market. According to reports, the list of countries most affected by this decision includes China, India, South Korea, Thailand and Indonesia. Auto parts, textiles, steel and other industrial goods imported into Mexico from these countries will now be subject to a duty of up to 50 percent. According to the resolution passed in the Senate, about 1,400 imported goods have been brought under its purview. Tariffs on many goods have been increased to 35 percent and on some to a maximum of 50 percent. 76 votes were cast in favor of this bill in the Senate, while only 5 votes were cast against it.

The Mexican government officially argues that this move is to protect and promote local industries. However, economic analysts and the private sector believe the real reason behind this is geopolitical. According to experts, this decision is a strategy to appease neighboring America. Furthermore, Mexico is struggling with its fiscal deficit, and this increased tariff is expected to generate additional revenue of approximately $3.76 billion next year. However, business organizations have strongly opposed this increase.