Mexico’s Senate has approved steep tariff hikes on imported goods from countries including India, China, South Korea, Thailand, Indonesia and Vietnam. The new duties, effective January 1 2026, will hit a maximum of 50% on some products while most face increases around 35%.
President Claudia Sheinbaum’s government says the move protects domestic manufacturing and jobs from foreign competition.
Sectors such as autos, textiles, steel, plastics and footwear are in focus. Officials also see it as a way to reduce dependence on imports and raise revenue. Analysts estimate the tariffs could bring in roughly $3.7 billion for Mexico next year.
Critics warn the measure may disrupt global supply chains and push costs higher for manufacturers. Economists also highlight risks of inflation and trade friction.
Some observers see a strategic side as Mexico’s biggest partner is the United States. With Washington pressuring Latin America to limit ties with China, the tariffs may appease the US and reduce the threat of additional tariffs.
For India, the impact could be heavy. India exports roughly $5.3 billion worth of goods to Mexico each year, led by vehicles, leather, footwear, machinery, electrical equipment, chemicals and metals.
According to the Council for Leather Exports (CLE), in FY2023-24, the Indian leather industry exported leather, footwear (leather and non-leather) and leather products, including leather goods, leather garments, leather gloves, saddlery and harness, worth Rs. 200.71 crore in FOB value (~$25 million).
In country-wise ranking, Mexico falls 25th but contributes only 0.56% of the entire Indian leather industry’s export in FY2024-25, which was $4.69 billion.
If we segregate this Rs. 200.71 crore (~$25 million) by product category:
Finished leather – Rs. 12.06 crore
Leather footwear – Rs. 69.85 crore
Non-leather footwear – Rs. 73.86 crore
Total footwear category (leather and non-leather) – Rs. 143.71 crore
Leather goods – Rs. 17.56 crore
Leather garments – Rs. 4.23 crore
Leather gloves – Rs. 23.05 crore
Harness & saddlery – Rs. 0.11 crore
If you look closely at the trade data, leather gloves category rank as the second highest exported product to Mexico by value after footwear.
The broader effect may reshape global supply chains. Indian exporters might shift focus to other markets or push for trade negotiations.
In conclusion, Mexico’s tariff decision hits Indian exports at a critical time. The ultimate impact will depend on diplomatic talks, trade negotiations and how countries balance protectionism with global integration.
