Mexico has given a big blow—from January 1, 2026, it is increasing huge import duties on all those countries with which there is no Free Trade Agreement, and India is also included in this list. Mexico’s Senate has approved new tariffs, in which duties on many categories will increase from 35% to 50%. The biggest impact will be on Indian automobile exporters—Mexico is India’s third-largest car export destination, with annual shipments of about $1 billion. Now, due to imposition of such heavy tariff, Indian companies like Maruti Suzuki, Hyundai, Tata Motors, Mahindra and component manufacturers may have to face huge cost pressure and demand slowdown. Steel, plastics, aluminium, chemicals and textile exporters will also be directly affected. These tariffs have been taken to protect Mexico’s domestic industry, to increase revenue, and perhaps for geopolitical balancing (especially US pressure). This step will increase both India-Mexico trade imbalance and supply chain costs. Trade tensions and global export competition are going to intensify. Will India retaliate? Will Indian exporters find alternate markets? This video will explain all the details in easy language.