Archive · 16 Dec 2025
Mexico Imposes 50% Tariffs on India
Mexico has decided to put a tax of 5% to 50% on many things it buys from India and other countries that don't have special trade deals with Mexico.
This tax will affect about $2 billion worth of goods that India sends to Mexico, including cars, motorcycles, and other products.
India is worried because this tax will make it harder for Indian companies to sell their products in Mexico.
To fix this, India has suggested making a special trade deal with Mexico to lower or remove these taxes on some products.
Mexico says the taxes are allowed by global trade rules and are meant to help Mexican companies.
India is trying to talk to Mexico to make sure both countries can still trade easily and fairly.
Mexico imposed tariffs of 5-50% on 1,463 tariff lines from non-FTA countries, including India, effective January 1, 2026.
The tariffs will affect approximately $2 billion worth of Indian exports, including automobiles, two-wheelers, auto parts, textiles, and more.
India proposed a preferential trade agreement (PTA) with Mexico to mitigate the impact of the tariffs on its exporters.
Mexico's tariffs are WTO-compatible and aim to protect domestic industries and correct trade imbalances.
India-Mexico merchandise trade totaled $8.74 billion in 2024, with India having a trade surplus of $2.72 billion.
- Who
- Mexico and India
- What
- Mexico imposed tariffs of 5-50% on various goods from India and other non-FTA countries.
- When
- Effective from January 1, 2026
- Where
- Mexico
- Why
- To protect domestic industries and correct trade imbalances, and to curb Chinese imports.
Mexico's Perspective
India's Perspective
Tariff Imposition
Mexico's Perspective
Mexico imposed tariffs to protect domestic industries and correct trade imbalances, targeting non-FTA partners.
India's Perspective
India views the tariffs as a significant challenge for its exporters, particularly in the automobile and auto components sectors.
Trade Agreement
Mexico's Perspective
Mexico's tariffs are WTO-compatible and do not target any specific country, aiming to support local production.
India's Perspective
India proposed a preferential trade agreement (PTA) to mitigate the impact of the tariffs and secure concessions for Indian supply chains.
- Tariff Rate
- 5-50%
- Affected Tariff Lines
- 1,463
- Impacted Indian Exports
- USD 2 billion
- India-Mexico Trade (2024)
- USD 8.74 billion
- India's Trade Surplus with Mexico (2024)
- USD 2.72 billion
- Impacted Sectors
- Automobiles, two-wheelers, auto parts, textiles, iron and steel, plastics, leather, footwear
- Proposed Solution by India
- Preferential Trade Agreement (PTA)
Sources
Mexico Imposes 50% Tariffs on India: 3 Stocks to Watch
Commerce secy says Mexico’s tariffs not targeted at New Delhi; trade talks underway
India Proposes Preferential Trade Agreement With Mexico to Deal With High Tariffs
Editorial. Mexican challenge
India Proposes Preferential Trade Deal With Mexico To Offset Steep Tariffs
Bajaj Auto shares: Export recovery, ramp up of Chetak, 3Ws key positives; should you buy?
