Four months after the US imposed 50% tariffs on most Indian goods, Mexico has approved similar levies of up to 50% on select imports from several Asian countries, including India and China. These tariffs, aimed at protecting domestic industries and producers, take effect from January.
Mexico has targeted a wide range of goods—such as auto parts, cars, clothing, plastics, steel, appliances, toys, textiles, furniture, footwear, leather products, paper, motorcycles, aluminium, trailers, glass, soaps, perfumes, and cosmetics—according to Mexican daily El Universal. The measures will impact countries without trade agreements with Mexico, including India, South Korea, China, Thailand, and Indonesia.
Mexico says the move is intended to reduce dependence on Asian imports, especially from China, address a large trade imbalance, generate an estimated US $3.8 billion in revenue, and boost domestic industry and employment. Analysts, however, believe the decision may also be aimed at satisfying the US ahead of the upcoming United States-Mexico-Canada Agreement review.
For India, the new tariffs will affect about $1 billion in shipments—mainly automobiles from major exporters like Volkswagen, Hyundai, Nissan, and Maruti Suzuki—with import duties on cars rising from 20% to 50%, dealing a serious setback in Mexico, India’s third-largest car export market.
President Scheinbaum
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