Mexico Tariff Hike to Hit $1 Billion India Car Exports

Mexico's decision to raise tariffs as high as 50% will affect $1 billion worth of shipments from major Indian car exporters, including Volkswagen and Hyundai, despite industry lobbying to persuade New Delhi to prevent such a move, according to two sources and a letter from an industry group reviewed by Reuters.

Mexican President Claudia Sheinbaum's government approved on Wednesday raising import tariffs next year on hundreds of items from countries it does not have trade



agreements with, including China and India, to protect local jobs and manufacturing.

But the move also comes amid U.S. pressure on Mexico to curtail business with China, despite opposition from local business groups warning that higher tariffs will raise costs. 

The import duty on cars will rise to 50% from 20%, dealing a significant blow to India's largest vehicle exporters to Mexico including Volkswagen, Hyundai, Nissan and Maruti Suzuki.