Officials and trade experts believe the move is an attempt to appease the United States ahead of the 2026 USMCA (United States-Mexico-Canada Agreement) review. The US has repeatedly expressed concerns over cheap Chinese imports entering its market via Mexico.
The legislation passed the Senate with 76 votes in favor, 5 against, and 35 abstentions, after previously proposed rates were moderated following protests from business groups and opposition parties. President Claudia Sheinbaum is expected to sign the bill, after which it will become law.
The tariffs aim to protect domestic industries, particularly the automotive and textile sectors. Chinese automobiles and components, which now account for 20% of Mexico’s market, will face a 50% duty. Textiles, apparel, footwear, steel, plastics, toys, motorcycles, electronics, and chemicals are also included, collectively affecting $52 billion (8.6%) of Mexico’s total imports.
India-Mexico trade has been growing steadily, surpassing $11.7 billion in 2024, with India maintaining a trade surplus of around $6 billion. India is Mexico’s tenth-largest trading partner globally and second in Latin America after Brazil.
While bilateral trade continues to expand, no Free Trade Agreement negotiations have been initiated between India and Mexico. Analysts warn that these tariffs could raise prices, fuel inflation, and disrupt existing trade flows, while Mexico aims to safeguard local manufacturing and respond to external diplomatic pressures.
The new tariffs mark a significant shift in Mexico’s trade policy, potentially reshaping its economic relations with Asia and affecting import-dependent businesses across multiple sectors.
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