The Senate of Mexico has already passed a new tariff bill, which will introduce increased importation duties on more than 1,400 goods from Asian countries, including India and China, in 2026. The bill passed by a vote of 76 to five against, and 35 abstained. The new tariffs will be between 5% and 50%, depending on the product and its origin, and focus on countries that do not have an established trade agreement with Mexico.
President Claudia Sheinbaum suggested the new tariffs as a measure to support local supply chains and to defend domestic industries. The industries that were given priority in the approved bill are steel, auto components, plastics, textiles, and clothing. The finance ministry of Mexico estimates that the tariffs will provide an increment of 52 billion pesos ($2.8 billion) of revenue to the government in 2026.
Analysts believe that this relates to trade policies that were made under the previous U.S. administration and could also be connected to the planning of the renegotiations before the renegotiations begin under the US-Mexico-Canada Agreement (USMCA).
The legislation will have an impact on the exports by major Asian economies that include India, China, South Korea, Indonesia, and Thailand. Most of the affected goods, according to sources, will fall in the category of 35% duty, though some will be in the 50% bracket. The automotive parts and textile materials sectors are expected to have the highest tariffs.
Senator Emmanuel Reyes of the majority party, Morena, defended the bill, saying that the policy is meant to make Mexican industries more competitive in the global supply chains and avoid loss of local employment. In late November, the Indian ambassador in Mexico, Pankaj Sharma, remarked that bilateral trade has been far lower than what they can achieve and that they would like to enhance collaboration in sectors such as pharmaceuticals, software, and information technology.
The official data provided on India-Mexico trade shows that the trade amounts to $8.6 billion between April 2024 and March 2025. In Mexico, more than 250 Indian companies are already present, and the Indian exports of automobiles to Mexico amount to $1.3 billion, the largest category of Indian exports.
In 2009, Mexico exported telephones, which were the main export to India, worth US $242 million. The approaching stage of the new tariff regime can also introduce both governments into discussions to overcome possible disruptions and seek exemptions or changes to ensure that the trade momentum continues.