What will be the impact of Mexico’s 50 percent tariff on India? This sector will be most affected…

Mexico has taken a big decision, which is going to have a direct impact on many countries including India. On Wednesday, the Mexican government announced that from 2026, heavy import duties (tariffs) will be imposed on hundreds of goods coming from India, China and all those countries with which Mexico does not have a free trade agreement. Mexico’s new President Claudia Shainbaum said that this step is being taken to save the factories and jobs of her country, so that the local industry is not harmed by cheap foreign goods.

According to Reuters report, Indian car exporters are going to suffer the most from this new tariff. The reason is simple, Mexico is India’s third largest car export market (South Africa is at first and Saudi Arabia is at second). Mexico’s Parliament has passed new tariffs on more than 1,400 types of goods. Up to 50% tariff may be imposed on some items. Due to this, cars worth about $ 1.8 billion (about Rs 15,000 crore) going from India to Mexico will become expensive and sales there may reduce.

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Which Indian companies will be most affected?

Skoda-Volkswagen (Skoda Auto Volkswagen India in India)

Hyundai

Nissan

Maruti-Suzuki

Among these too, Skoda has the biggest share. More than half of the cars going from India to Mexico are from Skoda. The company’s India head Piyush Arora had said that the demand for their Indian-made vehicles (like Kushaq, Slavia) was increasing very rapidly in Mexico. Now this tariff can put a brake on that growth.

Apart from cars, which other Indian goods will be affected?

According to the data of 2025, these goods were at the top in the total exports from India to Mexico:

Cars and vehicles – $1.86 billion

Electronic goods and electrical equipment – ​​$612 million

Machinery, boilers, reactors etc. – 56 crore dollars

Organic Chemical – $388 million

Aluminum and its products – $386 million

Medicines and pharmaceutical products – $211 million

This means that not only cars, Indian companies manufacturing electronics, chemicals, medicines and machinery may also suffer huge losses.

What is Indian industry doing?

According to the report, Indian car companies and industry organizations are trying their best to get the Mexican government to either stop this tariff or at least give exemption to India. For this, lobbying is going on from the officials in Delhi to the Indian Embassy in Mexico. This new rule of Mexico is a big blow for Indian exporters, especially car companies. If this tariff is implemented in 2026 and no new trade agreement is signed between India and Mexico, then India’s exports worth billions of dollars to Mexico may be badly affected.