The list of targeted nations includes China, India, South Korea, Thailand and Indonesia.The upper house cleared the bill with 76 votes in favour, five against and 35 abstentions, brushing aside protests from domestic industry bodies and strong objections from China. The lower house had already approved the measure.

Beginning next year and expanding through 2026, the new rates will apply to a wide swath of industrial inputs and consumer goods, including automobiles and parts, textiles, apparel, plastics, metals and footwear. While select items will face the maximum 50 per cent duty, most products are expected to fall under the 35 per cent bracket.

Why it matters for India

India, which has sought to boost exports of textiles, auto components and engineering goods to Latin America, now faces a significantly more challenging entry into the Mexican market, the second-largest economy in the region and a key North American gateway. Indian exporters have long leveraged Mexico as a stepping stone to the US, thanks to its integration in North American supply chains.

The tariff hikes threaten to hamper that advantage. Several Mexican import-dependent manufacturers have warned the government that higher duties on goods from India and other Asian nations will push up production costs and stoke inflation, according to agency reports.

Implications for India and the region

For Indian exporters, the tariff shift could:

– Reduce competitiveness in industries such as textiles, leather goods, auto parts and steel.

– Push companies to reconsider supply-chain routing through Mexico.

– Increase landed costs for Indian firms operating in or supplying to North American value chains via Mexico.

India’s commerce Ministry has not issued a statement yet.

Washington’s shadow over Mexico’s move

Analysts, including those in India tracking Latin American markets, believe Mexico’s sudden protectionist turn is closely tied to pressure from the United States ahead of next year’s USMCA (United States-Mexico-Canada Agreement) review.

President Claudia Sheinbaum’s government is understood to be signalling alignment with Washington’s tougher stance on Chinese goods, hoping this might help ease the sweeping US tariffs that have hit Mexico’s own exports such as steel and aluminium.