Mexico has cleared steep import duties of up to 50% on several goods from Asian nations, a move that places nearly $1 billion worth of Indian exports at risk from January 1, 2026. The decision targets countries that do not have a trade agreement with Mexico, including India, South Korea, China, Thailand and Indonesia.

Mexico moves to shield domestic industry

The new duties—covering items such as automobiles, auto parts, textiles, plastics, steel, footwear, furniture, toys, appliances, leather goods, and cosmetics—are aimed at strengthening local manufacturing. Mexico says the tariff push is designed to reduce dependence on Asian imports and support domestic producers.

China stands to face the highest impact, with Mexican imports from the country touching $130 billion in 2024. According to Mexico, the revised tax structure is also expected to generate $3.8 billion in additional revenue.

Mexican President Claudia Sheinbaum has backed the decision, framing it as an investment in domestic employment creation. Analysts, however, believe the move may also align with the United States’ expectations ahead of the upcoming United States–Mexico–Canada (USMCA) review.

Impact on India’s automobile exports

The sharpest blow for India will fall on its automobile sector. Imports of passenger cars into Mexico will now face 50% duty instead of the earlier 20%, threatening the competitiveness of major exporters including Volkswagen, Hyundai, Nissan and Maruti Suzuki.

Industry estimates cited in a report say around $1 billion worth of Indian automobile shipments could be affected. Ahead of the tariff announcement, an industry body had urged the Indian government to engage with Mexican authorities to safeguard market access.

Mexico is currently India’s third-largest car export destination, trailing only South Africa and Saudi Arabia.

Delhi-based restaurateurs Saurabh and Gaurav Luthra, wanted in connection with the Goa nightclub fire that claimed 25 lives, have been detained in Thailand. Images circulating online show the brothers with their hands tied, holding their passports, as they stand beside Thai police officials.

Brothers held in Phuket as India seeks deportation

The Luthra brothers, who run the Romeo Lane chain across multiple cities and countries, left for Phuket just hours after a massive blaze gutted their ‘Birch by Romeo Lane’ nightclub in north Goa’s Arpora. They are facing charges including culpable homicide not amounting to murder and negligence. Indian agencies are now preparing to push for their deportation so they can be tried in Goa.

Deadly fire triggered by flammable decor and safety lapses

The late-night blaze erupted during a musical event attended by around 100 people, most of them tourists. The use of electric firecrackers during a performance is suspected to have triggered the fire. The venue’s heavy use of flammable décor and absence of functional fire extinguishers or alarms turned it into a death trap.

A narrow access road further delayed fire engines, forcing responders to park nearly 400 metres away, significantly hindering rescue operations. By the time the blaze was doused, 25 people — including five tourists and 20 staff members — had died, most due to toxic smoke inhalation in the basement.

Police pursuit and legal battle

Following the incident, four staff members were arrested and a search began for the Luthras. Investigators from Goa and Delhi discovered the brothers had booked their tickets soon after the fire and left the country within hours. Their business partner, Ajay Gupta, has already been arrested in Delhi.

The brothers have moved a Delhi court seeking anticipatory bail, arguing they were licensees, not owners, of the building. They claimed they were not present at the nightclub when the fire occurred and said their travel to Thailand was for a business meeting, not to evade investigation. Their plea seeks four weeks of protection from arrest upon their return to India.

US President Donald Trump has signalled the possibility of fresh tariffs on agricultural imports from India, raising concerns over rice shipments that he says are hurting American farmers. His remarks came during a White House meeting where he unveiled a multi-billion-dollar relief package for domestic growers, while criticising imports from India and other Asian suppliers.

India cited during discussion on US rice market pressures

Trump referred directly to India after a Louisiana producer described imported rice as damaging to southern farmers. When informed that Indian companies owned two major retail rice brands in the US, Trump responded that tariffs could “solve the problem in two minutes,” reiterating his belief that some countries were “dumping” products unfairly.

He argued that such measures were necessary to stabilise America’s farm economy, stating that domestic growers were facing pressure from low commodity prices and inflation. The President said the administration’s farm assistance plan — worth USD 12 billion — would be funded by tariff revenues collected from trading partners.

Possible action on Canadian fertiliser imports

Along with India, Trump also indicated tariff action could extend to fertiliser imports from Canada, suggesting such steps would boost local production.

India–US farm trade continues to expand

India exports basmati rice, other rice varieties, spices and marine products to the US, while importing almonds, cotton and pulses. However, issues around subsidies, market access and WTO disputes — particularly those involving rice and sugar — have periodically strained trade negotiations.