In a new move, Mexico has imposed a 50 per cent tariff on India and several other Asian countries. The Mexican lawmakers have approved new tariffs on hundreds of products, many of which come from China. Mexican President Claudia Sheinbaum said these tariffs are needed to support Mexico’s domestic industries. The Mexican Senate passed the plan on Wednesday. This comes against the backdrop of ongoing India–US talks on reducing the tariffs imposed by the Trump administration on India.
Tariffs to apply to these goods
The new tariff will apply to items such as metals, cars, clothing, and appliances. The bill will put tariffs on about 1,400 types of imported products, but it is a milder version of an earlier proposal that did not pass. Mexico has gone ahead with this plan even though China and local business groups opposed it. This shows that Mexico is changing its trade approach as the country prepares for the upcoming review of the United States-Mexico-Canada Agreement (USMCA).
When will the new Tariffs apply?
The new taxes will start on 1 January 2026. It has to be noted that the move comes as Mexico is in negotiations with the US over steep import taxes that President Donald Trump has threatened to impose on the country.
Trump Tariff and Mexico
Trump has also warned that he may put more tariffs on Mexico. One of these could be a 25 per cent tax. He says these tariffs would be part of the US effort to push countries to take stronger action to stop the flow of the synthetic drug fentanyl into America.
India-US trade deal talks
US negotiators began two days of trade talks in New Delhi on Wednesday. A senior American official said India has now offered its strongest proposals so far for a long-delayed trade agreement.
The US team, led by Deputy Trade Representative Rick Switzer, met India’s chief negotiator Darpan Jain, with Commerce Secretary Rajesh Agrawal supervising the discussions.
Both countries are trying to finalise the first part of a framework trade deal this year. The talks come at a tense moment, as the US has imposed a 25 percent tariff plus another 25 percent penalty on Indian goods linked to India’s purchase of Russian oil — a combined 50 percent duty, one of the highest the US has placed on any partner.
