New Delhi: Starting January 1, 2026, Mexico will impose steep tariffs ranging from 5% to 50% on more than 1,460 imported products from countries that do not have a Free Trade Agreement (FTA) with it. India which does not have an FTA with Mexico, is set to be one of the countries most affected by this new trade policy.

Why Mexico is imposing these tariffs

Mexico’s decision is driven by four major factors:

1. To curb cheap Chinese imports

China currently enjoys a huge trade surplus with Mexico over USD 100 billion. A surge of low-cost Chinese steel, auto-parts and textiles has hurt Mexican manufacturers. Mexico also wants to crack down on Chinese companies setting up plants in the country solely to re-export to the U.S.

2. To align more closely with the United States

The US-Mexico-Cana

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