Mexico Approves Sweeping Tariff Hikes on Asian Imports, Hitting India and Others From 2026

Under the new framework, Mexico will impose or raise duties on goods entering from countries that do not share a trade agreement with it. India, China, South Korea, Thailand, and Indonesia are among the most affected exporters. The tariff schedule, which takes effect in 2026, targets major industrial categories including automobiles, auto components, textiles, garments, plastics, and steel. According to the legislation, most products will face tariffs capped at around 35 percent, while certain items may see charges rise as high as 50 percent.

Mexican lawmakers backing the measure argue that the higher duties are essential to strengthening domestic production and shielding local industries from what they describe as intense pricing pressure from low-cost Asian manufacturers. However, the decision has drawn strong criticism from business chambers, import-dependent sectors, and several governments impacted by the hikes, all of whom warn that the move could strain supply chains, raise consumer prices, and undermine Mexico’s global competitiveness.

Despite this pushback, the Senate voted to advance the tariff regime, marking one of the country’s most significant departures from its long-held support for open markets and international trade agreements. As Mexico prepares to implement the new rates, exporters across Asia now face the prospect of diminished access to a key North American market at a time when global manufacturing networks are already under pressure from shifting geopolitical and economic alignments.