Summary
Mexico has increased tariffs on over 1,400 products from countries without free trade agreements, like India, which is impacting Indian businesses. This follows similar tariffs imposed by the U.S. under President Trump's administration. Indian businesses, including a steel manufacturer heavily reliant on U.S. and Mexican markets, are experiencing reduced sales due to these tariffs.
Key Facts
- President Trump imposed a 50% tariff on Indian products, affecting trade.
- Mexico also imposed tariffs of 5% to 50% on products from non-free trade countries, including India.
- Indian businesses, such as Pankaj Chadha's steel company, report a 50% drop in sales to the U.S. and Mexico.
- Mexico claims the tariffs aim to boost local production and protect jobs.
- Indian exports to Mexico totaled $5.6 billion in 2024, including vehicles and electronic equipment.
- Mexico is trying to align its tariff policies with the U.S. due to trade pact reviews.
- The Indian government offers some relief by allowing SEZs to sell products domestically at lower duties.
- Chadha says Mexican tariffs disadvantage India compared to competitors with Mexican free trade agreements.
