Mexico has increased tariffs on Asian countries including China and India. This move would cost India badly especially for car exporters in shipments.

Report says, it will likely cost collectively Rs. 1 billion in shipment.

Mexico's recent decision to impose tariffs of up to 50% on goods from countries without free trade agreements, including India and China, is expected to significantly impact Indian exports. The tariffs, which will take effect on January 1, 2026, will affect over 1,400 products, including automobiles, auto parts, textiles, and electronics. Specifically, India's car exports to Mexico, valued at around $1 billion, will face a substantial hit, with major exporters like Volkswagen, Hyundai, Nissan, and Maruti Suzuki likely to be affected.

The Indian automotive industry has expressed concerns about the impact of these tariffs, with the Society of Indian Automobile Manufacturers (SIAM) urging the Indian government to engage with Mexico to maintain the existing tariff structure. The tariff hike could force Indian automakers to reassess their strategies and potentially divert shipments to other markets.

Key Points:

Tariff Rate: The import duty on cars will rise to 50% from 20%, affecting India's largest vehicle exporters to Mexico.

Affected Exports: India's car exports to Mexico were valued at $1 billion in the last fiscal year, with Volkswagen, Hyundai, Nissan, and Maruti Suzuki being major exporters.

Government Response: The Indian government is likely to take up the issue with Mexico through diplomatic channels to avoid harming Indian exports.