5 months ago
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The tariffs of up to 50% approved by Mexico’s Senate connected Wednesday (December 10, 2025) connected imports from Asian countries, including India, person been successful spot since April 2024 and volition not person a worldly interaction connected India’s wide export picture, an investigation of commercialized information shows. However, they could proceed to interaction peculiar sectors, specified arsenic automobiles.
As per the Senate’s decision, the tariffs are expected to use from April 1, 2026 onwards, and volition use to countries with which Mexico does not person a escaped commercialized agreement, which includes India. However, documents connected the Mexican government’s website amusement that these tariffs are not new.
In April 2024, the state imposed tariffs ranging from 5-50% connected a scope of items imported from non-FTA partners for a play of 2 years. The Senate’s determination this December is an hold of that archetypal decision.
Sector-specific impact
India exported $5.7 cardinal worthy of goods to Mexico successful 2024-25, which works retired to 1.3% of its full exports that year, showing that astatine an aggregate level, higher tariffs would not airs a important menace to India’s wide export scenario.
However, not lone are these exports dominated by a fewer sectors, Mexico is simply a large recipient of those sectors’ exports, which means the tariffs could airs a hazard to them.
For example, centrifugal cars and their parts made up $1.4 cardinal oregon 25% of India’s exports to Mexico. In addition, motorcycle exports marque up an further 7% of India’s exports to Mexico.
What places these sectors astatine much hazard than others is that Mexico is 1 of the largest markets for respective of these items. For example, Mexico accounts for astir 10% of India’s full car and car portion exports. Mexico constitutes astir 12% of India’s motorcycle exports.
‘Start FTA talks’
In absorption to the April 2024 tariffs and the consequent interaction they were having connected trade, the Engineering Exports Promotion Council (EEPC) wrote to Commerce Minister Piyush Goyal asking him to statesman talks with Mexico connected a imaginable FTA.
“Given Mexico’s value arsenic a cardinal export destination for Indian engineering products, our manufacture members are profoundly acrophobic that these measures could erode their competitiveness successful the Mexican market,” EEPC wrote successful its November 2025 letter, accessed by The Hindu.
“To code this, the manufacture powerfully feels the request for a Free Trade Agreement (FTA) oregon astatine slightest a Preferential Trade Agreement (PTA) betwixt India and Mexico covering the affected sectors,” the missive added.
According to EEPC, during April-October 2025, India’s full engineering exports to Mexico saw a diminution of 12%. It added that, during this period, exports declined crossed assorted sectors, including a 7% simplification successful steel, a 26% driblet successful robust and alloy products, a 56% diminution successful aluminium and its products, a 20% autumn successful car components, and a 32% alteration successful 2 and three-wheelers.
