Home / Business and Economy / Mexico's Tariffs Slam India Exports: Autos, Steel Hit Hard
Mexico's Tariffs Slam India Exports: Autos, Steel Hit Hard
12 Dec, 2025
Summary
- Nearly 75% of India's exports to Mexico will be impacted by new tariff hikes.
- Tariffs on key sectors like autos and steel will rise significantly.
- Mexico aligns trade policy with US, signaling support for North American nearshoring.
Mexico has implemented significant tariff increases on a wide range of imported products, directly affecting nearly 75% of India's exports to the Latin American nation. These hikes, approved on December 11, raise duties to as high as 50%, substantially impacting India's export economics, particularly for sectors like automobiles and steel.
The tariff overhaul is widely interpreted as Mexico aligning its trade strategy with the protectionist measures of the United States. This suggests a move towards supporting North American nearshoring and strengthening regional supply chains within the USMCA framework, thereby increasing trade barriers for non-Free Trade Agreement partners.
While pharmaceuticals remain largely unaffected, sectors like steel, passenger vehicles, auto components, electronics, and machinery will face punitive duties. This sudden shift in Mexico's trade policy highlights growing global trade rule fragility and poses a significant challenge for Indian exporters.
