Global Tariff Escalation: Mexico Aligns with US on China Duties, India Faces 50% Levy

Mexico will impose new tariffs on Chinese goods—including cars, textiles, and plastics—under its 2026 budget plan, echoing US trade policy. The move follows pressure from the TRUMP administration, which claims Chinese products are circumventing tariffs by transiting through Mexico. A temporary reprieve was granted last month after talks between President Trump and Mexico's Claudia Sheinbaum.

Meanwhile, the EU aims to fast-track the removal of all US industrial tariffs by week's end, advancing a trade framework agreed upon late last month. Trump has conditioned US auto tariff reductions on this step.

India now faces 50% tariffs, a decision experts warn could undermine decades of US-India diplomacy. The additional 25% levy targets New Delhi's purchases of Russian oil. South Korea's bid to lower its 15% duty was rejected, and Trump has flagged impending tariffs on furniture imports.