NewKerala.com

Mexico's Trade Shift: Why 50% Tariffs on India and China Signal Protectionist Turn

Mexico has decided to slap hefty new import duties on a wide range of goods from India, China, and several other Asian countries. The tariffs, which can go as high as 50%, are designed to shield Mexican industries from cheaper foreign competition. This protectionist move is expected to generate billions in revenue but has already drawn sharp criticism from China. The decision could significantly reshape trade flows and impact consumers on both sides of the equation.

Key Points: Mexico Imposes Up to 50% Import Duties on India China Goods

  • Mexico's new tariffs target 1,400 products from countries lacking trade deals
  • Duties range from 5% to 50% on items like clothing, footwear, and appliances
  • The move aims to protect national producers and reduce reliance on Asian imports
  • China opposes the measures, calling them unilateral and protectionist
3 min read

Mexico imposes up to 50 pc import duties on select goods from India, other Asian countries

Mexico's Senate approves tariffs up to 50% on goods from India, China, and other Asian nations to protect domestic industry, sparking trade tensions.

"We believe that supporting Mexican industry is to create jobs. - Deputy Ricardo Monreal"

Mexico City, December 11

Mexican City has approved tariff hikes of up to 50 per cent from the year 2026 on import of select products from Asian countries including from India and China in order to protect the national industry and producers, local media reported.

As per a report in the established Mexican news outlet El Universal, Mexico's Senate, the country's upper house of Parliament on Wednesday (local time) modified various tariff classifications of the General Import and Export Tax Law to impose duties ranging from 5 to 50 per cent on goods ranging from everyday consumer goods such as clothing, footwear, appliances, and furniture.

Specifically, the decree establishes tariffs on the import of various goods in the auto parts, light cars, clothing, plastics, steel, household appliances, toys, textiles, furniture, footwear, leather goods, paper and cardboard, motorcycles, aluminium, trailers, glass and soaps, perfumes and cosmetics as per the El Universal news report.

The Senate passed the bill, with 76 votes in favour, 5 against, and 35 abstentions with tariffs on about 1,400 different products from countries such as China , South Korea and others that do not have current trade agreements with Mexico.

Senator Marko Cortes, from the National Action Party (PAN), argued that the bill approved in San Lazaro only reached the Senate this Wednesday, so he questioned the intention of the legislators from Morena, the Green Party, and the Labor Party to approve a ruling without having read it.

As per the report in the Mexican news outlet Cristina Ruiz , a member of the PRI party , warned that the social impact of the tariff package could also be significant, as it affects everyday consumer goods such as clothing, footwear, appliances, and furniture.

According to Mexican economic news outlet, El financier, The Senate approved imposing tariffs on China and other Asian countries, in a move that analysts believe is intended to appease the US ahead of the United States Mexico Canada review.

According to the Mexiconewsdaily.com, the Mexican government is seeking to provide greater protection for the country's industry -- which includes sectors that struggle to compete with cheap imports -- and increase domestic output.

"We believe that supporting [Mexican] industry is to create jobs," Deputy Ricardo Monreal, Morena's leader in the Chamber of Deputies was cited in the news outlet

The government is also aiming to reduce reliance on imports from Asian countries, especially China, a country with which Mexico has a significant trade imbalance.

Among the other countries that will be affected by the proposed higher tariffs are India, South Korea, Thailand, Indonesia, Brazil, South Africa and the United Arab Emirates. The government estimated earlier this year that the proposed tariffs would generate additional revenue of 70 billion pesos (US $3.8 billion) per year as per the mexiconewsdaily.com.

Meanwhile, China on Thursday said that it has has "always opposed unilateral tariff hikes in all forms", and urges Mexico to "correct its wrong practices of unilateralism and protectionism at an early date."

State media Xinhua quoted a spokesperson of the Chinese Commerce Ministry to state that Beijing "will closely monitor the implementation of the Mexican measures and further evaluate their potential impact."

"The measures, if implemented, will substantially harm the interests of relevant trading partners, including China, although the proposal approved did include some adjustments from the September version, such as a certain degree of reduction in the proposed tariff rates for certain auto parts, light industrial products, and textiles and garments" the Chinese spokesperson said.

- ANI

Share this article:

Reader Comments

S
Sarah B
While I understand Mexico's desire to protect its industries, a 50% duty is extreme. It feels like India is getting caught in the crossfire of US-China-Mexico trade dynamics. Our MSME sector will be hit hard. 🇮🇳
P
Priya S
Time for 'Make in India' to get a bigger push for the domestic market too! Instead of relying heavily on exports, we should focus on boosting local consumption and improving product quality to compete globally, not just on price.
R
Rohit P
The article says the bill was passed without many legislators even reading it? That's shocking governance. How can such impactful decisions be made so casually? This lack of diligence affects real people's livelihoods in India and elsewhere.
K
Karthik V
China's opposition is noted, but we need our own strong response. India should consider similar strategic tariffs to protect our markets where needed, while actively working to finalize trade agreements with countries like Mexico to avoid such surprises.
N
Nisha Z
This is a wake-up call for Indian manufacturing. We need to move up the value chain. Competing solely on being the "cheaper alternative" to China is a fragile strategy. Quality and innovation should be the focus now.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50