Mexico's 50% Tariff Hike Threatens India's $5.7B Exports

• Mexico will impose tariffs of 5-50% on imports from non-preferential trade partners, including India, effective January 1, 2026.
• The tariffs target sectors like autos, auto parts, textiles, apparel, plastics, steel, metals, and footwear, affecting 1,463 tariff lines.
• India's $5.7 billion exports to Mexico, particularly vehicles (one-third of exports), face significant impact, with passenger vehicle duty rising to 50%.
• The measure, approved by Mexico's Congress, aims to boost manufacturing and reduce trade imbalances.
• India and Mexico are discussing a Free Trade Agreement (FTA) to mitigate the impact of these new tariffs.

Why It Matters: Mexico's new tariffs threaten India's $5.7B exports, urging FTA for future trade.