Mexico’s decision to roll out steep new tariffs from January *, ****, has landed like a thunderclap across global trade corridors, and countries without a Free Trade Agreement with it—facing tariffs ranging from * per cent to ** per cent on over *,*** products—are bracing for the impact.
At the centre of that storm also sits India, for which the implications are immediate and uncomfortable. Mexico has become a crucial export destination, particularly for passenger vehicles, with India ranking just behind South Africa and Saudi Arabia. With the new tariff regime kicking in (** per cent from the previous ** per cent), automobile shipments that have carved out a strong presence in the Mexican market suddenly find themselves under pressure, the competitive edge blunted by higher landed costs.
