Mexico has approved a sweeping new tariff regime that sharply increases duties on a wide range of Asian imports, marking a major policy shift away from its long-standing free-trade orientation. The Senate cleared the measure with a strong majority, raising duties, up to 50% in some cases, on more than 1,400 products from countries without a trade agreement with Mexico. The list includes China, India, South Korea, Thailand and Indonesia.
The duties, which will take effect from next year and expand through 2026, will apply to an extensive basket of goods such as automobiles and components, textiles, apparel, plastics, metals and footwear. While only select categories face the highest 50% rate, most items are expected to fall under the 35% slab.
India, which has been boosting exports of textiles, engineering goods and auto components to Latin America, now faces a tougher entry into Mexico, Latin America&rsquo;s second-largest economy and a crucial link to North American markets. Indian firms have long used Mexico as a gateway to the United States due to its integration with regional supply chains. The tariff hikes could undermine that advantage.
Indian exporters may experience reduced competitiveness, higher landed costs and disruptions in supply-chain strategies routed through Mexico. Several Mexican manufacturers dependent on imports have already warned that higher tariffs on products from India and other Asian countries will raise production costs and contribute to inflation.
Trade analysts suggest the shift reflects growing US pressure ahead of the upcoming USMCA review. The new rules closely mirror American trade actions targeting Chinese goods, indicating Mexico may be aligning itself more closely with Washington to safeguard its own export interests. Although President Claudia Sheinbaum has denied direct links to US demands, the similarities in structure have drawn attention.
The final version of the bill is less severe than earlier drafts, which proposed steep duties across nearly all targeted tariff lines. Even with diluted rates, Mexico&rsquo;s finance ministry expects additional revenue of around 52 billion pesos (₹19,000 crore) next year to help narrow its fiscal deficit.
Lawmakers remain divided. Opposition leaders argue that while the tariffs might support sectors struggling against cheap Chinese imports, they could also burden consumers. Supporters from the ruling party say the measures will strengthen domestic industries and protect jobs in priority sectors.
The auto industry, in particular, has welcomed the decision, noting that China&rsquo;s rapidly growing market share, now about 20%, poses a risk to Mexico&rsquo;s local manufacturing base. Under the new structure, imported Chinese vehicles will face the highest 50% duty.
The legislation gives Mexico&rsquo;s Economy Ministry expanded authority to adjust tariffs on non-FTA countries without legislative approval, allowing swift responses before the USMCA review. This could result in more unpredictable tariff structures for Indian businesses exporting to Mexico.
With the US and Canada tightening oversight on Chinese supply-chain routing, Mexico&rsquo;s move signals a broader North American shift toward protectionism, one that will significantly impact India&rsquo;s trade positioning in the region.
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New Mexican tariff regime hits India, China and other Asian exporters hard

Mexico Raises Tariffs on Asian Imports

New Mexican tariff regime hits India, China and other Asian exporters hard

December 11, 2025 | 12:54 IST