Team siliconindia

• Mexico to impose tariffs up to 50 percent on imports from India, China, and several Asian nations
• New duties target autos, textiles, plastics, and steel starting 2026
• Move aims to protect domestic industry despite objections from businesses and foreign governments

Mexico has opened a new front in the global trade tensions after its Senate approved major tariff hikes on imports from India, China, South Korea, Thailand, Indonesia, and other Asian nations. The new duties, which could reach as high as 50 percent, will come into effect next year and mark a significant shift in the country’s trade policy.

The bill, passed with 76 votes in favor, five against, and 35 abstentions, targets countries that do not have formal trade agreements with Mexico. It aims to strengthen local manufacturing and shield domestic producers ahead of the upcoming review of the United States-Mexico-Canada Agreement (USMCA). Despite strong criticism from affected governments and Mexico’s own business chambers, lawmakers pushed the legislation through.

Starting 2026, certain categories such as autos, auto parts, textiles, clothing, plastics, and steel will face tariffs of up to 50 percent. Most other goods will see rates capped at 35%. The new policy is designed to reduce reliance on low-cost imports and encourage investment in local production, according to officials.

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The measure approved by the Senate is a scaled-back version of a more aggressive proposal that failed earlier this year. The earlier draft sought tariff changes across about 1,400 product categories. The revised version reduced duties on nearly two-thirds of those items to balance political, economic, and diplomatic interests.

Industry groups warn that the steep tariffs may raise production costs, disrupt supply chains, and hurt competitiveness. Meanwhile, governments of impacted countries have expressed concern, calling the move protectionist. Still, Mexican lawmakers argue the step is necessary to support domestic industries in an increasingly volatile global trade environment.