Mexico's Tariff Announcement
On Thursday, Mexico declared the imposition of up to a 50% tariff on imports from countries with which it does not have preferential trade agreements, including India. This development may significantly impact New Delhi's exports to Mexico, which are valued at $5.75 billion annually.
Implementation Timeline
The tariffs are scheduled to take effect from January 1, 2026.
Countries Affected
- India
- China
- Brazil
- Several other countries without Free Trade Agreements (FTAs) with Mexico
Industry Concerns
Exporters, particularly from the engineering sector, have expressed concerns over this move. The industry has been advocating for a trade deal with Mexico to leverage the US-Mexico-Canada Agreement and benefit from Mexico's manufacturing ecosystem.
Key Sectors Affected
- Electronics
- Apparels
- Chemicals
- Engineering goods
- Automobiles
- Metals
Example: Pankaj Chadha, chairman of the EEPC, highlighted the issue in a letter to the commerce and industry ministry, emphasizing Mexico's significance as an export destination for Indian engineering products.