Now Mexico also moves on the U.S. path, imposes tariffs up to 50% on several countries; know how it will impact India

New Delhi (The Uttam Hindu): Mexico has joined the growing global tariff trend, following the United States. The country has approved a major move to impose tariffs of up to 50% on goods coming from China and several Asian countries. The Senate has cleared the proposal, and the new tariff structure will come into force from 2026. This decision mainly targets those countries that do not have a trade agreement with Mexico.

According to reports, from 2026 onwards, heavy duties will be imposed on auto parts, textiles, steel, and other products imported from China, India, South Korea, Thailand and Indonesia. In some categories, tariffs have been raised up to 35%. The proposal received 76 votes in favour, 5 against, while 35 members were absent.

Mexico says the decision aims to strengthen its domestic industries, although several trade groups have opposed it. Analysts believe the move is also intended to please the United States and generate an additional $3.76 billion in revenue next year to reduce the budget deficit.

The revised bill now covers fewer product categories compared to earlier drafts, and tariffs on around 1,400 imported items have been moderately adjusted. Mexico has previously raised tariffs on Chinese goods as well, but the impact was limited.

In recent years, trade between India and Mexico has grown rapidly. Bilateral trade stood at $11.4 billion in 2022, dipped slightly in 2023, and rose to a record $11.7 billion in 2024. In 2024, India exported goods worth $8.9 billion to Mexico, while imports were $2.8 billion, keeping India’s trade surplus strong.