Chennai: Nearly 75 per cent of India’s $5.75 billion exports to Mexico will be affected as tariffs jump from 0–15 per cent to a maximum of 50 per cent. Exports of auto and auto components as well as steel will be hit hardest with a prohibitive 50 per cent tariff.
The tariff hikes target key sectors such as automobiles, auto parts, textiles, steel, plastics and clothing, with most products moving from earlier tariff levels of 0–15 per cent to about 35 per cent, and a few strategic items—especially steel and auto—jumping to the maximum 50 per cent duty.
“For India, the measures affect nearly three-quarters of its $5.75 billion exports to Mexico in FY2025, fundamentally altering the commercial logic of accessing the Mexican market,” said GTRI.
Automobiles and auto components, India’s largest export segment with $1.9 billion in FY25, will be among the worst affected.
Iron and steel exports of $128.44 million are hit hardest as tariffs rise from 10–15 per cent to 35 per cent on long products and a prohibitive 50 per cent on flat products, effectively closing the Mexican market to Indian steel exporters. Articles of iron or steel, valued at $176.87 million, will see duties jump from 15 per cent to 35 per cent.
The electronics and machinery sector faces an equally sharp setback. Smartphones, which recorded $284.53 million in exports will see duties rising from nil to 35 per cent, effectively shutting the Mexican market for Indian handset exports.
Industrial machinery, India’s second-largest export category to Mexico at $547.99 million, will see duties rise from 5–10 per cent to 25–35 per cent.
Aluminium exports worth $383.28 million face duties increasing from 5–10 per cent to 25–35 per cent.
Garments and made-ups, with exports of $245.90 million, will see tariffs rising from 20–25 per cent to 35 per cent, sharply reducing India’s competitiveness against suppliers from FTA countries. Tariffs of textiles exports of $149.94 million will increase from 10–15 per cent to 25 per cent.
Organic chemicals, a $391.12 million export segment, will witness tariffs rising from 5–7.5 per cent to 15–25 per cent. Plastics and plastic articles, exported to the tune of $136.69 million, see duties rise from 10–15 per cent to 25 per cent, disproportionately affecting MSME exporters.
Coffee, tea, and spices, valued at $36.45 million, face tariffs rising from 0–5 per cent to 15 per cent. END
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: deccanchronicle.com
