After US, Mexico hikes tariffs on Indian goods

After the US’ 50 per cent tariffs on India, it is now Mexico’s turn. The Mexican Senate approved tariff hikes of up to 50 per cent on several Asian countries, including India. Mexico’s tariff hike comes as it aims to bolster its local industry.

The proposal would raise or impose new duties of mostly up to 35 per cent on goods such as autos, auto parts, textiles, clothing, plastics and steel, despite opposition from business groups. Apart from India, countries like China, South Korea, Thailand and Indonesia would also be affected.

The bill that would impose tariffs on around 1,400 import lines was softened from an earlier stalled version. The move comes despite opposition from China and local business groups, signalling a shift in Mexico’s trade posture as the country faces the upcoming United States-Mexico-Canada Agreement (USMCA) review.

Analysts and the private sector argue the measure is designed to appease the United States and generate $3.76 billion in additional revenue next year as Mexico seeks to address its fiscal deficit.

The revised bill covers fewer product lines than previously proposed, and the reduced tariff rates reflect a compromise following strong pushback from lawmakers and industry.

Earlier this year, Mexico increased tariffs on Chinese goods, a move which, according to analysts, was intended to address Washington’s trade concerns, although United States officials have continued to express reservations.

(With agency inputs)