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Mexico’s Senate has approved a 50% import tariff on goods from India, expanding trade restrictions that previously targeted China and other Asian economies. The new measure, set to take effect on January 1, will apply to automobiles, auto parts, textiles, plastics, and steel from countries without free trade agreements with Mexico. The move follows similar U.S. actions and is seen as part of Mexico’s broader effort to strengthen domestic manufacturing. Analysts suggest the decision reflects President Claudia Sheinbaum’s attempt to maintain favorable relations with Washington, particularly as former U.S. President Donald Trump pressures Mexico to impose higher duties on steel and aluminum. Mexico remains the United States’ largest trading partner, and the tariff policy could serve as a strategic gesture to avoid renegotiation of the USMCA trade pact. Economists warn the tariffs could raise production costs and strain supply chains across Asia. India, South Korea, China, Thailand, and Indonesia are expected to be most affected, potentially prompting diplomatic and trade responses in early 2025.

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