Mexico approves sharp tariff increases on mports from India and Other Asian Nations

Mexico has moved ahead with significant tariff hikes on a wide range of Asian imports, including goods from India, marking the second major escalation for Indian exporters after recent 50% duty increases by the United States. The Mexican Senate has endorsed new rates that in some cases rise to as high as 50%, a step the government says is intended to strengthen domestic manufacturing.

Under the approved plan, Mexico will introduce or raise duties—mostly capped at around 35%—on products such as automobiles, auto components, textiles, garments, plastics and steel. The decision affects not only India but also China, South Korea, Thailand and Indonesia.

The new law targets roughly 1,400 tariff lines, though it has been scaled back from a tougher earlier proposal that failed to gain legislative support. The update reflects a notable shift in Mexico’s trade strategy as the country prepares for the upcoming review of the United States-Mexico-Canada Agreement (USMCA).

Economists and business groups say the measure appears designed to align Mexico more closely with U.S. trade expectations while generating an estimated $3.76 billion in additional government revenue next year — cash the administration says it needs to narrow its fiscal deficit.

Although the revised bill reduces both the number of products covered and the level of some duties, it still faced strong pushback from domestic industry and lawmakers concerned about rising production costs. China also formally opposed the move.

This is not Mexico’s first tariff tightening this year. Earlier, the government imposed higher duties on Chinese imports, a step widely viewed as an effort to address U.S. concerns about Chinese supply chains entering North America through Mexico. Despite these actions, U.S. officials have continued to urge Mexico to further restrict certain categories of imports.