Mexico Raises Tariffs on Indian Goods, Autos Face 50% Hike

• Mexico will enforce significant import duty increases on goods from non-FTA nations, including India, starting January 1, 2026.
• Tariffs will reach up to 50% for automobiles and up to 35% for sectors like auto components, engineering goods, chemicals, and steel.
• The move aims to fortify domestic manufacturing, protect local employment, and align with US efforts to reduce China's supply chain influence.
• Indian automobile exports, nearly $1 billion of $5.3 billion in goods sent to Mexico last fiscal year, will be heavily impacted.
• This policy marks one of Mexico's most extensive trade-policy recalibrations in years, shifting towards protectionism.

Why It Matters: Mexico's tariffs on Indian goods will hit exporters and shift its trade policy.