Mexico’s Senate has approved sweeping tariff hikes that impose duties of up to 50% on a wide range of imported products, including those from India, China and other Asian nations, marking a significant shift in the country’s trade policy ahead of 2026.
The measure — passed on December 11, 2025 — targets more than 1,400 tariff lines and is aimed at protecting domestic industries while generating an estimated $3.76 billion in revenue in the year ahead.
What Products and Countries Are Impacted?
The new tariffs will affect products from countries without free trade agreements with Mexico — notably India, China, South Korea, Thailand and Indonesia.
Key sectors facing steep import duties include:
- Automobiles and auto parts
- Textiles and garments
- Steel and metals
- Plastics and consumer goods
- Footwear and apparel
Although the tariff hikes were approved with rates up to 50%, many products will see increases closer to 35% — a softened version compared with earlier proposals, reflecting legislative compromise.
Why Mexico Is Raising Tariffs
Mexican lawmakers and government officials argue the tariff increase is intended to:
✔ Strengthen local manufacturing and jobs
✔ Reduce dependency on foreign imports from non-FTA countries
✔ Correct trade imbalances and rebuild industrial capacity
✔ Boost government revenues amid slowing economic growth
President Claudia Sheinbaum’s administration has defended the move as a pragmatic adjustment to global trade pressures and as part of Mexico’s broader economic strategy.
Some analysts also interpret the tariffs as aligning Mexico’s trade posture with recent U.S. pressures to tighten barriers on Asian imports ahead of upcoming reviews of the United States-Mexico-Canada Agreement (USMCA).
Responses and Reactions
📉 Trade Partners Raise Concerns
Affected countries, including India and China, have expressed serious concerns about the tariff hikes, saying they could disrupt established supply chains and hurt economic cooperation. China’s Ministry of Commerce has already indicated it will monitor the policy’s impact closely
💬 Industry Warnings
Business groups and industrial lobbies in Mexico argue the tariffs could increase costs for consumers and manufacturers that rely on imported inputs, especially in sectors like automobiles, electronics and pharmaceuticals.
🤝 Diplomatic Pushback
India has been engaged in discussions with Mexican officials seeking tariff exemptions for Indian goods and exploring ways to maintain strong bilateral trade ties despite the new duties.
Trade and Economic Implications
- For Indian Exporters: Higher tariffs may make Indian products more expensive in the Mexican market, especially in automotive, textiles, plastics and steel sectors
- For Mexican Industry: Local producers could see short-term gains, but long-term competitiveness may be challenged by higher production costs if key imported components become more expensive.
- Global Trade: The move adds to broader global trade tension, following similar increases in tariffs elsewhere, and may prompt retaliatory measures or renegotiations of trade terms.
When It Takes Effect
The tariff hikes are expected to come into force on January 1, 2026, giving companies and trade partners a brief window to adjust supply chains and pricing strategies.
Bottom Line
Mexico’s approval of tariffs up to 50% on imports from India and other Asian countries represents a major shift in North American trade policy as global tensions in trade and industrial strategy continue to evolve. While intended to bolster domestic production, the move has already drawn concern from foreign governments and business groups — highlighting the complexity and risks of escalating tariff measures in an interconnected global economy. Reuters
