Mexico Imposes 50% Tariffs on Indian Imports: Automotive Sector Faces $1 Billion Export Challenge

Dec 12, 2025 10:41 am CST

Mexico has imposed tariffs up to 50% on imports from India and other Asian nations without trade agreements, significantly impacting India's $8.4 billion trade relationship. The automotive sector faces the severest consequences, with car import duties rising from 20% to 50%, potentially affecting $1 billion in exports from companies like Volkswagen, Hyundai, and Nissan. This move comes amid pressure from the US on Mexico to reduce dependence on Asian imports, despite warnings of supply chain disruptions and domestic price increases.