As per a new Mexican Senate decision on tariffs, Asian countries, including China and India, will be hit with new duties of up to 50% in the new year, according to a Reuters report. The bill in question passed with 76 votes in favour and five against it. 35 abstentions were also recorded.
In a move similar to Donald Trump’s ‘America First’ agenda, Mexican President Claudia Sheinbaum is going forward with new tariffs on Asian imports to prioritise the local industry. On Wednesday, the country’s Senate gave a final go-ahead to the tariffs bill that will hit more than 1,400 products from Asian countries that don’t have a trade deal with Mexico with duties ranging between 5% and 50%, as per Bloomberg.
As per Mexico’s finance ministry estimates, the new tariff regime resembling the duties imposed by Trump on countries across the world will bring in 52 billion pesos ($2.8 billion) as extra revenue in 2026.
Countries to be affected by Mexico’s tariff legislation
President Sheinbaum pushed the proposal for Congress’ consideration in early September. Passed earlier by the lower house, the legislation will hit duties of up to 50% from 2026 on goods like auto parts, textiles, plastics, clothing and steel with countries like China, India, South Korea, Thailand and Indonesia.
According to the Reuters report, most of these products will have to face tariffs of up to 35%.
Mexico tariffs fuelled by US connection?
Citing analysts, the report furthered that the decision to hit Asian countries with new tariffs especially comes ahead of the next US-Mexico-Canada trade agreement (USMCA).
Emmanuel Reyes, a senator from the ruling Morena party, backed the tariff bill, saying, “These adjustments will boost Mexica products in global supply chains and protect jobs in key sectors. This is not merely a revenue-raising tool, but rather a means of guiding economic and trade policy in the interest of general welfare.”
India-Mexico ties
In late November, Pankaj Sharma, India’s ambassador to Mexico, suggested that New Delhi wanted to increase its trade with the country in software, pharmaceuticals and IT. According to Bloomberg, the top diplomat also hoped that the Mexican president will relieve India from tariffs.
“Our trade is much below the potential that both countries have today,” he said in an interview. “I think it is time that we focus on each other.”
“We are hopeful that at least India will not be impacted by these tariffs,” Sharma hoped at the time. At the same time, he revealed in the interview that while over 250 Indian companies were operating in Mexico, India-Mexico trade garnered only $8.6 billion from April 2024 through March 2025.
According to Mexico’s economy ministry stats, Indian automobiles coming to the Mexican market totalling $1.3 billion emerged as the biggest category imports from the South Asian nation. On the other hand, Mexico’s top export to India last year was telephones, which accounted for $242 million.