Mexican President Claudia Sheinbaum’s administration has authorized new import tariffs for the upcoming year on hundreds of items from countries such as China and India, with which Mexico does not have trade agreements. This measure aims to safeguard local jobs and manufacturing.
In 2026, Mexico will increase tariffs from 20% to as much as 50%, impacting $1 billion worth of shipments from major Indian car exporters, including Volkswagen, Maruti Suzuki, Nissan and Hyundai.
This move comes amid U.S. pressure on Mexico to cut business ties with China, despite resistance from local business groups, who warn that higher tariffs could raise costs.
The increase in tariffs might compel Indian automakers to reconsider their strategies that depend on Mexico, India’s third-largest car export market after South Africa and Saudi Arabia.
India exported goods valued at $5.3 billion to Mexico in the last fiscal year, with nearly $1 billion of that being cars.
Skoda Auto makes up almost half of India’s total car shipments to Mexico. Hyundai exported vehicles worth $200 million, Nissan’s exports were valued at $140 million, and Suzuki’s at $120 million.
By CEO NA Editorial Staff
