Mexican tariffs to hit 75 pc of Indian exports to the country, says GTRI

Mexico’s decision to hike tariffs on imports from India by up to 50% will impact 75% of the $5.75 billion worth of shipments to the country, according to an analysis by Global Trade Research Initiative (GTRI). Automobiles and auto components, India’s largest export segment to Mexico, will be among the worst affected. Passenger vehicles, with exports of $938.35 million in FY25, face a tariff increase from 20% to 35%, sharply eroding price competitiveness in a market increasingly shaped by US-Mexico-Canada (USMCA) sourcing rules. The impact is even more severe for auto components, which accounted for $507.26 million in exports. Tariffs on them are up from 10-15% to 35%, disrupting India’s deep integration into Mexico-based automotive supply chains which serve the US market. Motorcycles, another Indian stronghold with exports of $390.25 million, will see duties increase from 20% to 35%, as per a report.

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