Finshots Daily Why Mexico wants to impose tariffs on India
Dec 16, 2025
Mexico's impending tariffs on India are set to launch in January 2026, targeting over 1,400 products. The discussion delves into the motives behind these tariffs, which aim to protect local industries amid political pressures. India's substantial export reliance on Mexico highlights a $1 billion risk tied to the automotive sector. The podcast also explores Mexico's shift towards nearshoring strategies and the impacts of stricter USMCA rules. Finally, India's potential responses include negotiating trade agreements or diversifying its export markets.
AI Snips
Chapters
Transcript
Episode notes
Food-Truck Analogy For FTAs
- The host uses a food-truck example to explain how FTAs create preferential trading terms between partners.
- The example shows non-members facing extra costs despite equivalent quality or access.
Broad Tariffs Target Non‑FTA Asian Exports
- Mexico will charge tariffs up to 35–50% on over 1,400 products from non-FTA Asian countries starting 1 Jan 2026.
- Automobiles, steel, textiles and plastics are among the affected categories.
Trade Surplus Fuels Mexico's Protectionism
- India's exports to Mexico create a persistent trade surplus, which Mexico views as pressure on local industry and jobs.
- Trade deficits push policymakers to use tariffs and rules to protect domestic manufacturing.