Mexico to Impose Tariffs on Indian Cars, Hits $1.8B Exports

Mexico has approved new tariffs on hundreds of imported goods from countries without trade agreements, including India and China, set to take effect next year. The move, announced by President Claudia Sheinbaum, aims to protect local jobs and bolster domestic manufacturing.

Indian automakers are expected to face the brunt of this decision, with Mexico being India’s third-largest car export market after South Africa and Saudi Arabia. The new tariff regime, approved by Mexico’s Senate, could see duties rise up to 50% on more than 1,400 products.

Major Indian car exporters, including Volkswagen, Hyundai, Nissan, and Suzuki, may see shipments worth $1.8 billion (around ₹14,940 crore) impacted. Industry representatives are lobbying to prevent the tariff rollout.

In 2025, India exported goods worth $5.63 billion (₹5,085 crore) to Mexico, dominated by vehicles. Other affected sectors include electrical and electronic equipment ($612.38 million), machinery and boilers ($560.87 million), organic chemicals ($388.04 million), aluminum ($386.03 million), and pharmaceuticals ($211.20 million).

Piyush Arora, head of Skoda Auto Volkswagen India, emphasized Mexico’s importance as an export market and highlighted the rising demand for India-made models, with Skoda alone accounting for nearly half of all Indian car shipments to Mexico.