Mexico’s Senate has approved a new tariff law that will impose duties of up to 50% on a wide range of imports from Asian countries, including India, China, South Korea, Thailand, and Indonesia, starting January 1, 2026. The bill passed with 76 votes in favour, five against, and 35 abstentions, Reuters reported. The tariffs will affect more than 1,400 products, including automobiles, auto parts, textiles, plastics, clothing, and steel.
The move, pushed by Mexican President Claudia Sheinbaum, is aimed at boosting domestic production and prioritizing local industry, similar to former US President Donald Trump’s “America First” approach. According to Mexico’s finance ministry, the new tariff regime is expected to generate an additional 52 billion pesos (around $2.8 billion) in revenue in 2026.
Emmanuel Reyes, a senator from the ruling Morena party, said the tariffs “will boost Mexican products in global supply chains and protect jobs in key sectors. This is not merely a revenue-raising tool, but a means of guiding economic and trade policy in the interest of general welfare.” Analysts noted that the tariffs also come ahead of the next review of the US-Mexico-Canada trade agreement (USMCA), suggesting Washington’s influence on Mexico’s decision.
India-Mexico trade could be affected significantly by the tariffs. Indian Ambassador to Mexico, Pankaj Sharma, had earlier expressed hope that India would be exempted, saying, “Our trade is much below the potential that both countries have today. We are hopeful that at least India will not be impacted by these tariffs.” Currently, more than 250 Indian companies operate in Mexico, and bilateral trade totaled $8.6 billion from April 2024 to March 2025. Motor vehicles were India’s largest exports to Mexico, worth $1.3 billion, while Mexico’s top export to India was telephones, valued at $242 million.
The tariffs are likely to hit Indian exports of automobiles, auto parts, and other industrial goods, which could reduce India’s trade surplus with Mexico. In 2024, India’s exports to Mexico were $8.9 billion compared with imports of $2.8 billion, giving New Delhi a substantial trade balance in its favor. With duties of up to 50%, these exports may face higher costs, affecting businesses and supply chains in the coming year.
