Mexico will begin raising tariffs on imports from countries that do not have free trade agreements with it, including India, China, South Korea, Thailand, and Indonesia, starting Thursday.
The new tariff plan approved by the Mexican Congress will increase duties on thousands of products. Most tariffs will rise as high as 35 percent. These higher duties will cover major goods such as automobiles, auto parts, textiles, clothing, plastics, and steel.
Reason Behind the Tariff Increase
According to the Mexican government, the tariff changes aim to support domestic manufacturers and reduce dependence on imports from Asian countries like India and China. The government said the move will help protect nearly 350,000 jobs in Mexico’s manufacturing sector.
The measure also seeks to curb the inflow of relatively cheaper products from these nations and strengthen local industries. Mexico’s Economy Ministry says the duties will raise government revenues and encourage local production.
Expected Economic Impact
Mexico’s Finance Ministry expects the new tariffs to generate around 52 billion pesos (about $2.8 billion) in revenue in 2026. Earlier projections by the economy ministry estimated the tariff plan could generate about $3.76 billion in revenue next year.
China–Mexico Trade Snapshot (October 2025)
In October 2025, China exported $7.15B to Mexico and imported $1.43B, resulting in a trade surplus of $5.72B. Compared with October 2024, exports fell by 4.58% while imports declined by 2.05%. China mainly shipped cars, telephones, and vehicle parts, while it imported precious metal ore, copper ore, and medical instruments from Mexico.
The dip in China’s exports was largely due to lower shipments of unspecified commodities, toys, and delivery trucks. On the import side, the fall was driven by reduced purchases of integrated circuits, computers, and office machine parts. For the full year 2024, China’s exports to Mexico totaled US$90.23 billion, according to the UN COMTRADE database.
India’s Exports to Mexico
India’s exports to Mexico reached $5.75 billion in the financial year 2024-25. Key export categories included:
- Engineering goods led with $3.53 billion
- Electronics
- Chemicals
- Pharmaceuticals
- Garments
- Plastics
- Spices
- Leather goods
- Gems and jewellery
Mexico Senate Approves Tariff Bill
The Mexican Senate passed the tariff bill with a wide majority. Government officials say the new charges will boost Mexico’s economy, support local jobs, and strengthen manufacturing.
This tariff decision marks a significant shift in Mexico’s trade policy, especially impacting countries like India China South Korea Thailand and Indonesia that do not have free trade agreements with Mexico.
