Mexico Significantly Raises Tariffs On Cars, Hitting India’s $1 Billion Exports To Mexico

According to two sources and a letter from an industry association, Mexico has decided to raise tariffs to a maximum of 50%, which will affect $1 billion worth of exports to Mexico from major Indian automobile exporters, despite lobbying groups urging the Indian government to prevent this move. The government of President López Obrador approved on Wednesday to impose import tariffs on hundreds of goods from countries that have not signed trade agreements with Mexico starting next year. The tariff on automobile imports will increase from 20% to 50%, impacting the largest Indian car manufacturers exporting to Mexico, including Volkswagen India, Hyundai India, and Nissan India.Maruti Suzuki ) caused a significant blow.The copy of the letter shows that the members include modern and In November, the Indian Automobile Manufacturers Association urged the Indian Ministry of Commerce and Industry to pressure Mexico. The tariff increase may force Indian car companies to reassess their reliance strategy on the Mexican market. Mexico is India's third-largest automobile export destination after South Africa and Saudi Arabia, with total exports to Mexico reaching $5.3 billion in the previous fiscal year, of which automobiles accounted for nearly $1 billion.