Mexico’s Senate has approved tariffs of up to 50% on a wide range of imports from India and other Asian countries starting in 2026 to protect domestic industries and reshape global trade dynamics.
These tariffs will apply to over 1,400 product categories including automobiles, steel, textiles, electronics, chemicals, footwear, and home goods. The policy targets imports from countries that do not have free-trade agreements with Mexico—including India, China, Vietnam, Thailand, Indonesia, South Korea, and Malaysia.
The Mexican government states that the move aims to boost local manufacturing, reduce dependence on low-cost imports, and create domestic jobs. However, India and other Asian nations may view this as a significant trade barrier, potentially affecting bilateral relations and supply chains.
Economists predict higher production costs in Mexico, possible inflationary pressure, and shifts in sourcing across North America. Global trade analysts are monitoring how this decision will influence upcoming negotiations and foreign investment flows.
