Why did Mexico increase tariffs on Indian cars?

Mexico raised tariffs to protect local jobs and manufacturing from countries it does not have trade agreements with.

How much will the new tariffs cost Indian car exporters?

Indian car exporters will face a 50% tariff, impacting approximately $1 billion in shipments to Mexico.

What countries are affected by Mexico's new tariffs?

Mexico's new tariffs primarily affect countries with which it does not have trade agreements, including China and India.

Home / Business and Economy / Mexico Slams Door on Indian Autos: Tariffs Soar

Mexico Slams Door on Indian Autos: Tariffs Soar

11 Dec

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Summary

Mexico raises import tariffs significantly on goods from non-trade partners.
Indian car exporters face a 50% tariff, impacting $1 billion in shipments.
The move aims to protect local jobs amid US pressure on China relations.

Mexico Slams Door on Indian Autos: Tariffs Soar

Mexico's administration has enacted a new policy to raise import tariffs on a wide range of products originating from nations with which it lacks trade agreements. This measure, set to take effect next year, specifically targets countries including China and India, with the stated objective of bolstering domestic employment and manufacturing sectors.

The automotive industry is particularly affected, with tariffs on cars imported from India escalating to 50% from the previous 20%. This significant change is projected to impact about $1 billion worth of vehicle shipments from major Indian exporters. Industry groups in India had previously appealed to their government to intercede with Mexico, seeking to maintain the existing tariff rates.

This tariff hike occurs within a broader geopolitical context, including pressure from the United States for Mexico to reduce its trade with China. While local businesses have voiced concerns about increased costs, the Mexican government appears committed to its protective trade stance.