After America, now Mexico has also given a big blow to India. Mexico’s Parliament has approved a new bill, under which heavy tariffs ranging from 5% to 50% will be imposed on goods imported from many countries including India, China, Brazil. This law will apply to countries with which Mexico does not have a free trade agreement (FTA)—which includes India. This new fee structure will be applicable from January 1, 2026.

Mexico Parliament passes high-tariff bill
Both houses of the Mexican Parliament – the Senate and the lower house – have approved this bill. President Claudia Sheinbaum introduced it in September, proposing to increase import duties on 1,463 products.

Which products will be expensive?
The areas where fees have been increased in this law include:

• vehicle parts
• light vehicle
• plastic products
• toys
• clothing and apparel
• Furniture
• Shoes
• ready-made clothes
• aluminum products
• glassware

Tariffs ranging from 5% to 50% can be imposed on all these categories.

Why impact on India?
India does not have any FTA with Mexico, so this law will directly apply to Indian exports. India was Mexico’s 9th largest trading partner in the year 2023, and the total bilateral trade between the two countries stood at $10.58 billion. This means that many products sent from India will now become costlier in Mexico, which may affect the competitiveness of Indian companies.

Biggest impact on China, but India also affected
The government estimates that this move will generate additional revenue of $3.8 billion for Mexico every year. Although the biggest impact will be on China’s exports, India is also among the major countries which will have to face the brunt of this new law.

America had also taken a similar step
Earlier in August, America had increased the customs duty on many products imported from India to 50%. Now after Mexico’s decision, the pressure on Indian trade may increase further.