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Mexico Imposes New Tariffs on Goods from China and India

Supply Chain Management

Mexico’s Tariff Move on China and India Update Now

Business Honor
12 December, 2025

Mexico imposes new tariffs on imports from China and India, raising concerns for impacted industries and exporters.

On January 1, 2009, Mexico will implement a series of tariffs, as high as 50%, on goods imported into Mexico from countries that do not belong to the group of nations that have signed free trade agreements with Mexico. The New Mexico tariffs will cover more than 1,400 products and represent an important change in the way Mexico does business with its trading partners. This latest Mexico tariffs announcement will likely have a significant negative impact on India's export revenues, primarily from the automotive industry, which is estimated at around $5.75 billion annually. As Mexican tariffs news are being announced, many Indian market exporters are still feeling the effects of the US imposing a similar 50% tariff.

The Mexican government made a decision to protect the domestic industry from further competition with the United States if goods begin entering the U.S. from China through Mexico via Mexico tariffs on china. Ajay Sahai, Director General and CEO of the Federation of Indian Export Organizations, has said “This comes at a time when our industry is still shocked by the U.S.'s tariff imposition.” He went on to explain "Our industry is struggling with the Mexico tariffs situation, and now we have to deal with a 20 percent increase on tariffs coming from Mexico to India."

India exported approximately 1.3 percent of its total merchandise to Mexico during the 2024 to 2025 fiscal periods. The main products exported by India to Mexico were engineering goods, which accounted for 61 percent (3.5 billion U.S. dollars) of all exports. The Mexico tariff news will affect U.S. automakers' exports to Mexico (approximately one billion U.S. dollars) including Maruti Suzuki, Volkswagen Group, Hyundai Motor India, and Nissan. As a result, for passenger vehicles imported from India, the import tariff will increase from 20 percent to 50 percent causing carmakers to rethink their export strategy for this key market.