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Mexico approves tariffs on Asian imports, including goods from India: Who gets hit the most?
Mexico approved imposing tariffs on hundreds of goods from countries without trade agreements, including India and China, starting next year.
Mexico on Wednesday gave a go-ahead to imposing tariffs from next year on hundreds of goods from countries it said it does not have trade agreements with - including India and China. Mexico President Claudia Sheinbaum's government said the move is to protect local employment and manufacturing.
The tariff approval by Mexico, which Reuters reported first on Wednesday, on Asian imports is expected to hit the Indian automakers the most as Mexico, is India's third-largest car export market after South Africa and Saudi Arabia.
Mexico’s Senate has approved a new tariff regime that raises duties, in some cases up to 50 per cent, on more than 1,400 products imported from countries that do not have a formal trade agreement with Mexico, Reuters reported.
Mexico tariffs on India: Who gets hit the most?
Indian car exporters: Mexico's decision to raise tariffs as high as 50 per cent is expected to impact $1.8 billion (roughly ₹14,940 crore) worth of shipments from major Indian car exporters, including Volkswagen and Hyundai.
The industry is lobbying to persuade the Indian side to prevent the tariff move by Mexico, Reuters quoted two sources as saying and a letter from an industry group reviewed by it.
India exported goods worth $5.63 billion or roughly ₹5,085 crore (as per current USD to INR conversion rate) in 2025, with export basket being dominated by vehicles, according to tradingeconomics.com.
Other sectors that may get hit: Of the goods India exported to Mexico in 2025, vehicle exports (other than railway) comprised the largest chunk with to Mexico were at $1.86 billion, followed by:
-Electrical, electronic equipment - $612.38 million
-Machinery, nuclear reactors, boilers - $560.87 million
-Organic chemicals - $388.04 million
-Aluminum - $386.03 million
-Pharmaceutical products - $211.20 million
(as per tradingeconomics.com)
Piyush Arora, chief of VW's Indian unit, Skoda Auto Volkswagen, said India has been a strong export base for many years and the company ships to more than 40 countries from here.
"Mexico has consistently been one of our important export markets, given the rising demand there and the traction of our India-made models," Reuters quoted Arora as saying before the tariffs were approved.
Skoda Auto accounts for nearly 50 per cent of India's total car shipments to Mexico, followed by Hyundai shipped cars, Nissan and Suzuki, the report mentioned.
