Mexico has approved tariffs of up to 50 percent on select imports from Asian countries that do not have a trade agreement with it, including India, China, South Korea, Thailand, and Indonesia.
The decision comes four months after the United States imposed similar duties on India for most goods.
The new tariffs will take effect on January 1, 2026.
They apply to a wide range of products such as auto parts, light cars, textiles, plastics, steel, toys, clothing, footwear, furniture, household appliances, leather goods, paper, cardboard, motorcycles, aluminium, trailers, glass, soaps, perfumes, and cosmetics, according to Mexican daily El Universal.
Mexico says the move is aimed at protecting the domestic industry and reducing reliance on imports from Asian nations.
The government is particularly concerned about its large trade imbalance with China. In 2024, Mexico imported 130 billion dollars' worth of goods from China.
The tariffs are also expected to generate 3.8 billion dollars in additional revenue.
China criticised the decision, saying it opposes unilateral tariff hikes and urged Mexico to reverse the measure.
Mexican President Claudia Sheinbaum has defended the tariffs. She said strengthening the local industry will create jobs. Deputy Ricardo Monreal of the ruling Morena party said supporting domestic production is the priority.
Analysts quoted by El Financiero believe the tariffs may also be designed to align Mexico more closely with US expectations ahead of the upcoming United States-Mexico-Canada Agreement review.
For India, the impact will be significant.
Shipments worth one billion dollars will be affected, mainly from Indian car exporters such as Volkswagen, Hyundai, Nissan, and Maruti Suzuki. Import duty on cars will rise from 20 percent to 50 percent. The industry has warned that this will hit India’s third-largest car export market after South Africa and Saudi Arabia. Indian automakers have asked the government to engage with Mexico before the tariffs come into force.