The tariffs of up to 50% approved by Mexico’s Senate on Wednesday (December 10, 2025) on imports from Asian countries, including India, have been in place since April 2024 and will not have a material impact on India’s overall export picture, an analysis of trade data shows. However, they could continue to impact particular sectors, such as automobiles. 

As per the Senate’s decision, the tariffs are expected to apply from April 1, 2026 onwards, and will apply to countries with which Mexico does not have a free trade agreement, which includes India. However, documents on the Mexican government’s website show that these tariffs are not new.

In April 2024, the country imposed tariffs ranging from 5-50% on a range of items imported from non-FTA partners for a period of two years. The Senate’s move this December is an extension of that original decision.

Sector-specific impact

India exported $5.7 billion worth of goods to Mexico in 2024-25, which works out to 1.3% of its total exports that year, showing that at an aggregate level, higher tariffs would not pose a significant threat to India’s overall export scenario. 

However, not only are these exports dominated by a few sectors, Mexico is a major recipient of those sectors’ exports, which means the tariffs could pose a risk to them. 

For example, motor cars and their parts made up $1.4 billion or 25% of India’s exports to Mexico. In addition, motorcycle exports make up an additional 7% of India’s exports to Mexico.

What places these sectors at more risk than others is that Mexico is one of the largest markets for several of these items. For example, Mexico accounts for about 10% of India’s total auto and auto part exports. Mexico constitutes about 12% of India’s motorcycle exports.

‘Start FTA talks’

In reaction to the April 2024 tariffs and the subsequent impact they were having on trade, the Engineering Exports Promotion Council (EEPC) wrote to Commerce Minister Piyush Goyal asking him to begin talks with Mexico on a potential FTA.

“Given Mexico’s importance as a key export destination for Indian engineering products, our industry members are deeply concerned that these measures could erode their competitiveness in the Mexican market,” EEPC wrote in its November 2025 letter, accessed by The Hindu. 

“To address this, the industry strongly feels the need for a Free Trade Agreement (FTA) or at least a Preferential Trade Agreement (PTA) between India and Mexico covering the affected sectors,” the letter added.

According to EEPC, during April-October 2025, India’s total engineering exports to Mexico saw a decline of 12%. It added that, during this period, exports declined across various sectors, including a 7% reduction in steel, a 26% drop in iron and steel products, a 56% decline in aluminium and its products, a 20% fall in auto components, and a 32% decrease in two and three-wheelers.