Mexico slaps up to 50% tariff on imports from India, China

Engg goods account for 61% of India's $5.75 bn exports to North American nation

- SHREYA NANDI & SHINE JACOB

Mexico on Thursday imposed a tariff of up to 50 per cent on imports from its non-preferential trade partners, including India, a move that might hit New Delhi's annual $5.75 billion shipments to its third-largest car export market.

The escalation by the North American country comes at a time when Indian exporters are already grappling with a 50 per cent tariff imposed by the US, which has severely impacted labour-intensive sectors. The tariffs range between 5 per cent and 50 per cent on more than 1,400 products from Asian countries, such as India, China and Thailand that do not have a trade deal with Mexico.

The duties are set to kick in from January 1, 2026, and will apply to electronics, apparels, chemicals, a large number of engineering goods, which includes automobiles, metals, among others. The move is aimed at protecting Mexico's domestic industry. The government and the Indian exporters are closely watching the development and waiting for the formal notification by the Mexican government. They said they were trying to understand if the move is primarily targeted at China.